Correlation Between Microbot Medical and Performance Food
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Performance Food 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 Performance Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Performance Food Group, you can compare the effects of market volatilities on Microbot Medical and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Performance Food.
Diversification Opportunities for Microbot Medical and Performance Food
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Microbot and Performance is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of Microbot Medical i.e., Microbot Medical and Performance Food go up and down completely randomly.
Pair Corralation between Microbot Medical and Performance Food
Assuming the 90 days trading horizon Microbot Medical is expected to generate 6.84 times more return on investment than Performance Food. However, Microbot Medical is 6.84 times more volatile than Performance Food Group. It trades about 0.01 of its potential returns per unit of risk. Performance Food Group is currently generating about 0.06 per unit of risk. If you would invest 307.00 in Microbot Medical on August 27, 2024 and sell it today you would lose (217.00) from holding Microbot Medical or give up 70.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Performance Food Group
Performance |
| Timeline |
| Microbot Medical |
| Performance Food |
Microbot Medical and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Performance Food
The main advantage of trading using opposite Microbot Medical and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| Microbot Medical vs. Chuangs China Investments | Microbot Medical vs. PennantPark Investment | Microbot Medical vs. Sporttotal AG | Microbot Medical vs. Apollo Investment Corp |
| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
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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