Correlation Between Microbot Medical and Trip Group
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Trip Group 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 Trip Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Trip Group Limited, you can compare the effects of market volatilities on Microbot Medical and Trip Group 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 Trip Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Trip Group.
Diversification Opportunities for Microbot Medical and Trip Group
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microbot and Trip is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Trip Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trip Group Limited 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 Trip Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trip Group Limited has no effect on the direction of Microbot Medical i.e., Microbot Medical and Trip Group go up and down completely randomly.
Pair Corralation between Microbot Medical and Trip Group
Assuming the 90 days trading horizon Microbot Medical is expected to under-perform the Trip Group. But the stock apears to be less risky and, when comparing its historical volatility, Microbot Medical is 1.04 times less risky than Trip Group. The stock trades about -0.05 of its potential returns per unit of risk. The Trip Group Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,720 in Trip Group Limited on September 2, 2024 and sell it today you would earn a total of 1,380 from holding Trip Group Limited or generate 29.24% 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. Trip Group Limited
Performance |
| Timeline |
| Microbot Medical |
| Trip Group Limited |
Microbot Medical and Trip Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Trip Group
The main advantage of trading using opposite Microbot Medical and Trip Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Trip Group 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 Trip Group will offset losses from the drop in Trip Group's long position.| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
| Trip Group vs. Charter Communications | Trip Group vs. INTERSHOP Communications Aktiengesellschaft | Trip Group vs. WillScot Mobile Mini | Trip Group vs. Iridium Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |