Correlation Between Microbot Medical and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and COFCO Joycome 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 Microbot Medical and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and COFCO Joycome Foods, you can compare the effects of market volatilities on Microbot Medical and COFCO Joycome 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 Microbot Medical with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and COFCO Joycome.
Diversification Opportunities for Microbot Medical and COFCO Joycome
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microbot and COFCO is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and Microbot Medical 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 Microbot Medical are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of Microbot Medical i.e., Microbot Medical and COFCO Joycome go up and down completely randomly.
Pair Corralation between Microbot Medical and COFCO Joycome
Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.8 times more return on investment than COFCO Joycome. However, Microbot Medical is 1.8 times more volatile than COFCO Joycome Foods. It trades about 0.01 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about 0.0 per unit of risk. If you would invest 123.00 in Microbot Medical on September 14, 2024 and sell it today you would lose (26.00) from holding Microbot Medical or give up 21.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. COFCO Joycome Foods
Performance |
| Timeline |
| Microbot Medical |
| COFCO Joycome Foods |
Microbot Medical and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and COFCO Joycome
The main advantage of trading using opposite Microbot Medical and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| Microbot Medical vs. COFCO Joycome Foods | Microbot Medical vs. EEDUCATION ALBERT AB | Microbot Medical vs. TAL Education Group | Microbot Medical vs. TYSON FOODS A |
| COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. NorAm Drilling AS |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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