Correlation Between Ihuman and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Microbot Medical, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Microbot Medical.
Diversification Opportunities for Ihuman and Microbot Medical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ihuman and Microbot is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Microbot Medical go up and down completely randomly.
Pair Corralation between Ihuman and Microbot Medical
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Microbot Medical. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 1.7 times less risky than Microbot Medical. The stock trades about -0.03 of its potential returns per unit of risk. The Microbot Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Microbot Medical on September 4, 2024 and sell it today you would lose (21.00) from holding Microbot Medical or give up 17.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Microbot Medical
Performance |
| Timeline |
| Ihuman Inc |
| Microbot Medical |
Ihuman and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Microbot Medical
The main advantage of trading using opposite Ihuman and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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