Correlation Between Microbot Medical and Powercell Sweden
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Powercell Sweden 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 Powercell Sweden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Powercell Sweden, you can compare the effects of market volatilities on Microbot Medical and Powercell Sweden 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 Powercell Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Powercell Sweden.
Diversification Opportunities for Microbot Medical and Powercell Sweden
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microbot and Powercell is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden 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 Powercell Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powercell Sweden has no effect on the direction of Microbot Medical i.e., Microbot Medical and Powercell Sweden go up and down completely randomly.
Pair Corralation between Microbot Medical and Powercell Sweden
Assuming the 90 days trading horizon Microbot Medical is expected to under-perform the Powercell Sweden. But the stock apears to be less risky and, when comparing its historical volatility, Microbot Medical is 1.03 times less risky than Powercell Sweden. The stock trades about 0.0 of its potential returns per unit of risk. The Powercell Sweden is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 308.00 in Powercell Sweden on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Powercell Sweden or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Powercell Sweden
Performance |
| Timeline |
| Microbot Medical |
| Powercell Sweden |
Microbot Medical and Powercell Sweden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Powercell Sweden
The main advantage of trading using opposite Microbot Medical and Powercell Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Powercell Sweden 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 Powercell Sweden will offset losses from the drop in Powercell Sweden's long position.| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
| Powercell Sweden vs. CDL INVESTMENT | Powercell Sweden vs. AGNC INVESTMENT | Powercell Sweden vs. QINGCI GAMES INC | Powercell Sweden vs. VARIOUS EATERIES LS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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