Correlation Between Microbot Medical and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Yuexiu Transport 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 Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Microbot Medical and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Yuexiu Transport.
Diversification Opportunities for Microbot Medical and Yuexiu Transport
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microbot and Yuexiu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Microbot Medical i.e., Microbot Medical and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Microbot Medical and Yuexiu Transport
Assuming the 90 days trading horizon Microbot Medical is expected to generate 5.72 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, Microbot Medical is 2.61 times less risky than Yuexiu Transport. It trades about 0.1 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Yuexiu Transport Infrastructure on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Yuexiu Transport Infrastructure or generate 37.5% 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. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Microbot Medical |
| Yuexiu Transport Inf |
Microbot Medical and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Yuexiu Transport
The main advantage of trading using opposite Microbot Medical and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| Microbot Medical vs. MEDICAL FACILITIES NEW | Microbot Medical vs. Compugroup Medical SE | Microbot Medical vs. RETAIL FOOD GROUP | Microbot Medical vs. Pick n Pay |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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