Correlation Between Sixt Leasing and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and Microbot Medical, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Microbot Medical.
Diversification Opportunities for Sixt Leasing and Microbot Medical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Microbot is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and Microbot Medical go up and down completely randomly.
Pair Corralation between Sixt Leasing and Microbot Medical
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.23 times more return on investment than Microbot Medical. However, Sixt Leasing SE is 4.28 times less risky than Microbot Medical. It trades about -0.02 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.01 per unit of risk. If you would invest 1,093 in Sixt Leasing SE on September 2, 2024 and sell it today you would lose (168.00) from holding Sixt Leasing SE or give up 15.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Microbot Medical
Performance |
| Timeline |
| Sixt Leasing SE |
| Microbot Medical |
Sixt Leasing and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Microbot Medical
The main advantage of trading using opposite Sixt Leasing and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. Bausch Health Companies | Sixt Leasing vs. ANGLER GAMING PLC | Sixt Leasing vs. Bumrungrad Hospital Public | Sixt Leasing vs. EHEALTH |
| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
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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