Correlation Between DIH Holding and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both DIH Holding and Microbot 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 DIH Holding and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIH Holding US, and Microbot Medical, you can compare the effects of market volatilities on DIH Holding and Microbot 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 DIH Holding with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIH Holding and Microbot Medical.
Diversification Opportunities for DIH Holding and Microbot Medical
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between DIH and Microbot is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DIH Holding US, and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and DIH Holding 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 DIH Holding US, are associated (or correlated) with Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of DIH Holding i.e., DIH Holding and Microbot Medical go up and down completely randomly.
Pair Corralation between DIH Holding and Microbot Medical
Assuming the 90 days horizon DIH Holding US, is expected to generate 10.53 times more return on investment than Microbot Medical. However, DIH Holding is 10.53 times more volatile than Microbot Medical. It trades about 0.19 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.01 per unit of risk. If you would invest 2.59 in DIH Holding US, on September 13, 2024 and sell it today you would earn a total of 1.91 from holding DIH Holding US, or generate 73.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DIH Holding US, vs. Microbot Medical
Performance |
| Timeline |
| DIH Holding US, |
| Microbot Medical |
DIH Holding and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIH Holding and Microbot Medical
The main advantage of trading using opposite DIH Holding and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIH Holding position performs unexpectedly, Microbot 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| DIH Holding vs. Zedge Inc | DIH Holding vs. Upper Street Marketing | DIH Holding vs. BCE Inc | DIH Holding vs. Lululemon Athletica |
| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |