Correlation Between Coca Cola and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Coca Cola 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 Coca Cola 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 Coca Cola and Microbot Medical, you can compare the effects of market volatilities on Coca Cola 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 Coca Cola with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Microbot Medical.
Diversification Opportunities for Coca Cola and Microbot Medical
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Microbot is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Coca Cola 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 Coca Cola 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 Coca Cola i.e., Coca Cola and Microbot Medical go up and down completely randomly.
Pair Corralation between Coca Cola and Microbot Medical
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the Microbot Medical. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 3.35 times less risky than Microbot Medical. The stock trades about -0.09 of its potential returns per unit of risk. The Microbot Medical is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Microbot Medical
Performance |
| Timeline |
| Coca Cola |
| Microbot Medical |
Coca Cola and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Microbot Medical
The main advantage of trading using opposite Coca Cola and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola 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.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |