Correlation Between Haemonetics and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Haemonetics 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 Haemonetics and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haemonetics and Microbot Medical, you can compare the effects of market volatilities on Haemonetics 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 Haemonetics with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and Microbot Medical.
Diversification Opportunities for Haemonetics and Microbot Medical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Haemonetics and Microbot is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Haemonetics 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 Haemonetics 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 Haemonetics i.e., Haemonetics and Microbot Medical go up and down completely randomly.
Pair Corralation between Haemonetics and Microbot Medical
Considering the 90-day investment horizon Haemonetics is expected to generate 0.21 times more return on investment than Microbot Medical. However, Haemonetics is 4.82 times less risky than Microbot Medical. It trades about 0.01 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.0 per unit of risk. If you would invest 8,471 in Haemonetics on August 24, 2024 and sell it today you would earn a total of 84.00 from holding Haemonetics or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haemonetics vs. Microbot Medical
Performance |
| Timeline |
| Haemonetics |
| Microbot Medical |
Haemonetics and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haemonetics and Microbot Medical
The main advantage of trading using opposite Haemonetics and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics 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.| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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