Correlation Between Microbot Medical and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and NTG Nordic 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 NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and NTG Nordic Transport, you can compare the effects of market volatilities on Microbot Medical and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and NTG Nordic.
Diversification Opportunities for Microbot Medical and NTG Nordic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Microbot and NTG is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Microbot Medical i.e., Microbot Medical and NTG Nordic go up and down completely randomly.
Pair Corralation between Microbot Medical and NTG Nordic
Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.47 times more return on investment than NTG Nordic. However, Microbot Medical is 1.47 times more volatile than NTG Nordic Transport. It trades about 0.12 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about -0.05 per unit of risk. If you would invest 88.00 in Microbot Medical on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Microbot Medical or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Microbot Medical vs. NTG Nordic Transport
Performance |
| Timeline |
| Microbot Medical |
| NTG Nordic Transport |
Microbot Medical and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and NTG Nordic
The main advantage of trading using opposite Microbot Medical and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
| NTG Nordic vs. Lifeway Foods | NTG Nordic vs. PT Indofood Sukses | NTG Nordic vs. TreeHouse Foods | NTG Nordic vs. ADRIATIC METALS LS 013355 |
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.
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