Correlation Between EIDESVIK OFFSHORE and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EIDESVIK OFFSHORE NK and Microbot Medical, you can compare the effects of market volatilities on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and Microbot Medical.
Diversification Opportunities for EIDESVIK OFFSHORE and Microbot Medical
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EIDESVIK and Microbot is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK 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 EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and Microbot Medical go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and Microbot Medical
Assuming the 90 days horizon EIDESVIK OFFSHORE is expected to generate 5.68 times less return on investment than Microbot Medical. But when comparing it to its historical volatility, EIDESVIK OFFSHORE NK is 1.94 times less risky than Microbot Medical. It trades about 0.04 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Microbot Medical on August 27, 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 |
EIDESVIK OFFSHORE NK vs. Microbot Medical
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| Microbot Medical |
EIDESVIK OFFSHORE and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and Microbot Medical
The main advantage of trading using opposite EIDESVIK OFFSHORE and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE 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.| EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc | EIDESVIK OFFSHORE vs. Apple Inc |
| Microbot Medical vs. Chuangs China Investments | Microbot Medical vs. PennantPark Investment | Microbot Medical vs. Sporttotal AG | Microbot Medical vs. Apollo Investment Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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