Correlation Between ESGEN Acquisition and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both ESGEN Acquisition 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 ESGEN Acquisition and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESGEN Acquisition Corp and Microbot Medical, you can compare the effects of market volatilities on ESGEN Acquisition 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 ESGEN Acquisition with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGEN Acquisition and Microbot Medical.
Diversification Opportunities for ESGEN Acquisition and Microbot Medical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ESGEN and Microbot is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ESGEN Acquisition Corp and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and ESGEN Acquisition 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 ESGEN Acquisition Corp 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 ESGEN Acquisition i.e., ESGEN Acquisition and Microbot Medical go up and down completely randomly.
Pair Corralation between ESGEN Acquisition and Microbot Medical
If you would invest 93.00 in Microbot Medical on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Microbot Medical or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ESGEN Acquisition Corp vs. Microbot Medical
Performance |
| Timeline |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Microbot Medical |
ESGEN Acquisition and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESGEN Acquisition and Microbot Medical
The main advantage of trading using opposite ESGEN Acquisition and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGEN Acquisition 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.| ESGEN Acquisition vs. Origin Materials | ESGEN Acquisition vs. NextNav Warrant | ESGEN Acquisition vs. Where Food Comes | ESGEN Acquisition vs. Air Products and |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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