Correlation Between Microbot Medical and Appian Corp
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Appian Corp 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 Appian Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Appian Corp, you can compare the effects of market volatilities on Microbot Medical and Appian Corp 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 Appian Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Appian Corp.
Diversification Opportunities for Microbot Medical and Appian Corp
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microbot and Appian is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian Corp 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 Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Microbot Medical i.e., Microbot Medical and Appian Corp go up and down completely randomly.
Pair Corralation between Microbot Medical and Appian Corp
Assuming the 90 days trading horizon Microbot Medical is expected to generate 2.2 times less return on investment than Appian Corp. In addition to that, Microbot Medical is 2.13 times more volatile than Appian Corp. It trades about 0.01 of its total potential returns per unit of risk. Appian Corp is currently generating about 0.03 per unit of volatility. If you would invest 3,127 in Appian Corp on September 3, 2024 and sell it today you would earn a total of 379.00 from holding Appian Corp or generate 12.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Appian Corp
Performance |
| Timeline |
| Microbot Medical |
| Appian Corp |
Microbot Medical and Appian Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Appian Corp
The main advantage of trading using opposite Microbot Medical and Appian Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Appian Corp 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 Appian Corp will offset losses from the drop in Appian Corp's long position.| Microbot Medical vs. MAGIC SOFTWARE ENTR | Microbot Medical vs. Darden Restaurants | Microbot Medical vs. USU Software AG | Microbot Medical vs. Guidewire Software |
| Appian Corp vs. Playa Hotels Resorts | Appian Corp vs. ANTA SPORTS PRODUCT | Appian Corp vs. PLAY2CHILL SA ZY | Appian Corp vs. Digilife Technologies Limited |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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