Correlation Between Microbot Medical and Apollo Medical
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Apollo 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 Microbot Medical and Apollo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Apollo Medical Holdings, you can compare the effects of market volatilities on Microbot Medical and Apollo 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 Microbot Medical with a short position of Apollo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Apollo Medical.
Diversification Opportunities for Microbot Medical and Apollo Medical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microbot and Apollo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Apollo Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Medical Holdings 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 Apollo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Medical Holdings has no effect on the direction of Microbot Medical i.e., Microbot Medical and Apollo Medical go up and down completely randomly.
Pair Corralation between Microbot Medical and Apollo Medical
Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.34 times less return on investment than Apollo Medical. In addition to that, Microbot Medical is 4.83 times more volatile than Apollo Medical Holdings. It trades about 0.01 of its total potential returns per unit of risk. Apollo Medical Holdings is currently generating about 0.04 per unit of volatility. If you would invest 2,802 in Apollo Medical Holdings on August 30, 2024 and sell it today you would earn a total of 1,178 from holding Apollo Medical Holdings or generate 42.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Microbot Medical vs. Apollo Medical Holdings
Performance |
| Timeline |
| Microbot Medical |
| Apollo Medical Holdings |
Microbot Medical and Apollo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Apollo Medical
The main advantage of trading using opposite Microbot Medical and Apollo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Apollo 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 Apollo Medical will offset losses from the drop in Apollo Medical's long position.| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
| Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical vs. Apple Inc | Apollo Medical 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |