Correlation Between Microbot Medical and AIR PRODCHEMICALS
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and AIR PRODCHEMICALS, you can compare the effects of market volatilities on Microbot Medical and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and AIR PRODCHEMICALS.
Diversification Opportunities for Microbot Medical and AIR PRODCHEMICALS
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Microbot and AIR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and AIR PRODCHEMICALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIR PRODCHEMICALS 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 AIR PRODCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIR PRODCHEMICALS has no effect on the direction of Microbot Medical i.e., Microbot Medical and AIR PRODCHEMICALS go up and down completely randomly.
Pair Corralation between Microbot Medical and AIR PRODCHEMICALS
Assuming the 90 days trading horizon Microbot Medical is expected to generate 6.35 times more return on investment than AIR PRODCHEMICALS. However, Microbot Medical is 6.35 times more volatile than AIR PRODCHEMICALS. It trades about 0.01 of its potential returns per unit of risk. AIR PRODCHEMICALS is currently generating about 0.02 per unit of risk. If you would invest 419.00 in Microbot Medical on August 28, 2024 and sell it today you would lose (326.00) from holding Microbot Medical or give up 77.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. AIR PRODCHEMICALS
Performance |
| Timeline |
| Microbot Medical |
| AIR PRODCHEMICALS |
Microbot Medical and AIR PRODCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and AIR PRODCHEMICALS
The main advantage of trading using opposite Microbot Medical and AIR PRODCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, AIR PRODCHEMICALS 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 AIR PRODCHEMICALS will offset losses from the drop in AIR PRODCHEMICALS'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 |
| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Microsoft |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |