Correlation Between Microbot Medical and Lockheed Martin
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Lockheed Martin 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 Lockheed Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Lockheed Martin, you can compare the effects of market volatilities on Microbot Medical and Lockheed Martin 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 Lockheed Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Lockheed Martin.
Diversification Opportunities for Microbot Medical and Lockheed Martin
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Microbot and Lockheed is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Lockheed Martin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lockheed Martin 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 Lockheed Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lockheed Martin has no effect on the direction of Microbot Medical i.e., Microbot Medical and Lockheed Martin go up and down completely randomly.
Pair Corralation between Microbot Medical and Lockheed Martin
Assuming the 90 days trading horizon Microbot Medical is expected to generate 28.49 times more return on investment than Lockheed Martin. However, Microbot Medical is 28.49 times more volatile than Lockheed Martin. It trades about 0.19 of its potential returns per unit of risk. Lockheed Martin is currently generating about 0.09 per unit of risk. If you would invest 100.00 in Microbot Medical on October 25, 2024 and sell it today you would earn a total of 78.00 from holding Microbot Medical or generate 78.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Lockheed Martin
Performance |
| Timeline |
| Microbot Medical |
| Lockheed Martin |
Microbot Medical and Lockheed Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Lockheed Martin
The main advantage of trading using opposite Microbot Medical and Lockheed Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Lockheed Martin 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 Lockheed Martin will offset losses from the drop in Lockheed Martin's long position.| Microbot Medical vs. Cleanaway Waste Management | Microbot Medical vs. Platinum Investment Management | Microbot Medical vs. Brockhaus Capital Management | Microbot Medical vs. Kingdee International Software |
| Lockheed Martin vs. CARSALESCOM | Lockheed Martin vs. Caseys General Stores | Lockheed Martin vs. AEON STORES | Lockheed Martin vs. 24SEVENOFFICE GROUP AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |