Correlation Between Microbot Medical and ONWARD MEDICAL
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and ONWARD 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 ONWARD 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 ONWARD MEDICAL BV, you can compare the effects of market volatilities on Microbot Medical and ONWARD 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 ONWARD MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and ONWARD MEDICAL.
Diversification Opportunities for Microbot Medical and ONWARD MEDICAL
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microbot and ONWARD is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and ONWARD MEDICAL BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONWARD MEDICAL BV 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 ONWARD MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONWARD MEDICAL BV has no effect on the direction of Microbot Medical i.e., Microbot Medical and ONWARD MEDICAL go up and down completely randomly.
Pair Corralation between Microbot Medical and ONWARD MEDICAL
Assuming the 90 days trading horizon Microbot Medical is expected to generate 0.88 times more return on investment than ONWARD MEDICAL. However, Microbot Medical is 1.14 times less risky than ONWARD MEDICAL. It trades about 0.11 of its potential returns per unit of risk. ONWARD MEDICAL BV is currently generating about -0.03 per unit of risk. If you would invest 88.00 in Microbot Medical on August 28, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. ONWARD MEDICAL BV
Performance |
| Timeline |
| Microbot Medical |
| ONWARD MEDICAL BV |
Microbot Medical and ONWARD MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and ONWARD MEDICAL
The main advantage of trading using opposite Microbot Medical and ONWARD MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, ONWARD 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 ONWARD MEDICAL will offset losses from the drop in ONWARD MEDICAL'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 |
| ONWARD MEDICAL vs. Apyx Medical Corp | ONWARD MEDICAL vs. Geratherm Medical AG | ONWARD MEDICAL vs. MCEWEN MINING INC | ONWARD MEDICAL vs. ADRIATIC METALS LS 013355 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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