Correlation Between Microbot Medical and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Lloyds Banking 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 Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Lloyds Banking Group, you can compare the effects of market volatilities on Microbot Medical and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Lloyds Banking.
Diversification Opportunities for Microbot Medical and Lloyds Banking
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microbot and Lloyds is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Microbot Medical i.e., Microbot Medical and Lloyds Banking go up and down completely randomly.
Pair Corralation between Microbot Medical and Lloyds Banking
Assuming the 90 days trading horizon Microbot Medical is expected to generate 11.92 times more return on investment than Lloyds Banking. However, Microbot Medical is 11.92 times more volatile than Lloyds Banking Group. It trades about 0.1 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.3 per unit of risk. If you would invest 108.00 in Microbot Medical on November 30, 2024 and sell it today you would earn a total of 34.00 from holding Microbot Medical or generate 31.48% 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. Lloyds Banking Group
Performance |
| Timeline |
| Microbot Medical |
| Lloyds Banking Group |
Microbot Medical and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Lloyds Banking
The main advantage of trading using opposite Microbot Medical and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Microbot Medical vs. Columbia Sportswear | Microbot Medical vs. Singapore Telecommunications Limited | Microbot Medical vs. Cairo Communication SpA | Microbot Medical vs. Computer And Technologies |
| Lloyds Banking vs. CORNISH METALS INC | Lloyds Banking vs. UNIVERSAL MUSIC GROUP | Lloyds Banking vs. FIREWEED METALS P | Lloyds Banking vs. Zijin Mining Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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