Correlation Between Chiba Bank and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Chiba Bank and Microbot Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chiba Bank and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank Ltd and Microbot Medical, you can compare the effects of market volatilities on Chiba Bank and Microbot Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chiba Bank with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and Microbot Medical.
Diversification Opportunities for Chiba Bank and Microbot Medical
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chiba and Microbot is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank Ltd and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Chiba Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chiba Bank Ltd are associated (or correlated) with Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Chiba Bank i.e., Chiba Bank and Microbot Medical go up and down completely randomly.
Pair Corralation between Chiba Bank and Microbot Medical
If you would invest 96.00 in Microbot Medical on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Microbot Medical or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiba Bank Ltd vs. Microbot Medical
Performance |
| Timeline |
| Chiba Bank |
| Microbot Medical |
Chiba Bank and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and Microbot Medical
The main advantage of trading using opposite Chiba Bank and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank position performs unexpectedly, Microbot Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Microbot Medical will offset losses from the drop in Microbot Medical's long position.| Chiba Bank vs. Standard Bank Group | Chiba Bank vs. Bank Central Asia | Chiba Bank vs. PSB Holdings | Chiba Bank vs. United Overseas Bank |
| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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