Correlation Between Microbot Medical and Beyond Meat
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Beyond Meat 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 Beyond Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Beyond Meat, you can compare the effects of market volatilities on Microbot Medical and Beyond Meat 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 Beyond Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Beyond Meat.
Diversification Opportunities for Microbot Medical and Beyond Meat
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microbot and Beyond is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Beyond Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Meat 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 Beyond Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Meat has no effect on the direction of Microbot Medical i.e., Microbot Medical and Beyond Meat go up and down completely randomly.
Pair Corralation between Microbot Medical and Beyond Meat
Assuming the 90 days trading horizon Microbot Medical is expected to generate 0.71 times more return on investment than Beyond Meat. However, Microbot Medical is 1.41 times less risky than Beyond Meat. It trades about 0.11 of its potential returns per unit of risk. Beyond Meat is currently generating about -0.27 per unit of risk. If you would invest 88.00 in Microbot Medical on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Microbot Medical or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Beyond Meat
Performance |
| Timeline |
| Microbot Medical |
| Beyond Meat |
Microbot Medical and Beyond Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Beyond Meat
The main advantage of trading using opposite Microbot Medical and Beyond Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Beyond Meat 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 Beyond Meat will offset losses from the drop in Beyond Meat's long position.| Microbot Medical vs. Chuangs China Investments | Microbot Medical vs. PennantPark Investment | Microbot Medical vs. Sporttotal AG | Microbot Medical vs. Apollo Investment Corp |
| Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc | Beyond Meat vs. Apple Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |