Correlation Between Microbot Medical and SAFETY MEDICAL
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and SAFETY MEDICAL 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 SAFETY MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and SAFETY MEDICAL PROD, you can compare the effects of market volatilities on Microbot Medical and SAFETY MEDICAL 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 SAFETY MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and SAFETY MEDICAL.
Diversification Opportunities for Microbot Medical and SAFETY MEDICAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microbot and SAFETY is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and SAFETY MEDICAL PROD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFETY MEDICAL PROD 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 SAFETY MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFETY MEDICAL PROD has no effect on the direction of Microbot Medical i.e., Microbot Medical and SAFETY MEDICAL go up and down completely randomly.
Pair Corralation between Microbot Medical and SAFETY MEDICAL
Assuming the 90 days trading horizon Microbot Medical is expected to generate 0.69 times more return on investment than SAFETY MEDICAL. However, Microbot Medical is 1.45 times less risky than SAFETY MEDICAL. It trades about 0.11 of its potential returns per unit of risk. SAFETY MEDICAL PROD is currently generating about -0.37 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 5.00 from holding Microbot Medical or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. SAFETY MEDICAL PROD
Performance |
| Timeline |
| Microbot Medical |
| SAFETY MEDICAL PROD |
Microbot Medical and SAFETY MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and SAFETY MEDICAL
The main advantage of trading using opposite Microbot Medical and SAFETY MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, SAFETY MEDICAL 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 SAFETY MEDICAL will offset losses from the drop in SAFETY MEDICAL'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 |
| SAFETY MEDICAL vs. PARKEN Sport Entertainment | SAFETY MEDICAL vs. REINET INVESTMENTS SCA | SAFETY MEDICAL vs. HK Electric Investments | SAFETY MEDICAL vs. Aluminum of |
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.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |