Correlation Between Intuitive Surgical and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical 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 Intuitive Surgical and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Microbot Medical, you can compare the effects of market volatilities on Intuitive Surgical 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 Intuitive Surgical with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Microbot Medical.
Diversification Opportunities for Intuitive Surgical and Microbot Medical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intuitive and Microbot is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Intuitive Surgical 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 Intuitive Surgical 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 Intuitive Surgical i.e., Intuitive Surgical and Microbot Medical go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Microbot Medical
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 8.38 times less return on investment than Microbot Medical. But when comparing it to its historical volatility, Intuitive Surgical is 10.24 times less risky than Microbot Medical. It trades about 0.24 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 114.00 in Microbot Medical on November 2, 2024 and sell it today you would earn a total of 71.00 from holding Microbot Medical or generate 62.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. Microbot Medical
Performance |
| Timeline |
| Intuitive Surgical |
| Microbot Medical |
Intuitive Surgical and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Microbot Medical
The main advantage of trading using opposite Intuitive Surgical and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical 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.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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