Correlation Between Microbot Medical and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Singapore Telecommunicatio 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 Singapore Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Singapore Telecommunications Limited, you can compare the effects of market volatilities on Microbot Medical and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Singapore Telecommunicatio.
Diversification Opportunities for Microbot Medical and Singapore Telecommunicatio
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microbot and Singapore is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of Microbot Medical i.e., Microbot Medical and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between Microbot Medical and Singapore Telecommunicatio
Assuming the 90 days trading horizon Microbot Medical is expected to under-perform the Singapore Telecommunicatio. In addition to that, Microbot Medical is 4.29 times more volatile than Singapore Telecommunications Limited. It trades about -0.01 of its total potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.06 per unit of volatility. If you would invest 155.00 in Singapore Telecommunications Limited on September 2, 2024 and sell it today you would earn a total of 65.00 from holding Singapore Telecommunications Limited or generate 41.94% 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. Singapore Telecommunications L
Performance |
| Timeline |
| Microbot Medical |
| Singapore Telecommunicatio |
Microbot Medical and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Singapore Telecommunicatio
The main advantage of trading using opposite Microbot Medical and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
| Singapore Telecommunicatio vs. LGI Homes | Singapore Telecommunicatio vs. DATAGROUP SE | Singapore Telecommunicatio vs. Science Applications International | Singapore Telecommunicatio vs. HomeToGo SE |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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