Correlation Between Gap, and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Gap, 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 Gap, and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Microbot Medical, you can compare the effects of market volatilities on Gap, 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 Gap, with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Microbot Medical.
Diversification Opportunities for Gap, and Microbot Medical
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gap, and Microbot is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Gap, 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 The Gap, 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 Gap, i.e., Gap, and Microbot Medical go up and down completely randomly.
Pair Corralation between Gap, and Microbot Medical
Considering the 90-day investment horizon The Gap, is expected to generate 0.65 times more return on investment than Microbot Medical. However, The Gap, is 1.55 times less risky than Microbot Medical. It trades about 0.09 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.02 per unit of risk. If you would invest 893.00 in The Gap, on August 31, 2024 and sell it today you would earn a total of 1,532 from holding The Gap, or generate 171.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. Microbot Medical
Performance |
| Timeline |
| Gap, |
| Microbot Medical |
Gap, and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Microbot Medical
The main advantage of trading using opposite Gap, and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, 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.| Gap, vs. SEI Investments | Gap, vs. Corporacion America Airports | Gap, vs. Nasdaq Inc | Gap, vs. Sabra Healthcare REIT |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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