Correlation Between Living Cell and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Living Cell 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 Living Cell and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Living Cell Technologies and Microbot Medical, you can compare the effects of market volatilities on Living Cell 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 Living Cell with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Living Cell and Microbot Medical.
Diversification Opportunities for Living Cell and Microbot Medical
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Living and Microbot is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Living Cell Technologies and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Living Cell 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 Living Cell Technologies 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 Living Cell i.e., Living Cell and Microbot Medical go up and down completely randomly.
Pair Corralation between Living Cell and Microbot Medical
Assuming the 90 days horizon Living Cell Technologies is expected to generate 8.89 times more return on investment than Microbot Medical. However, Living Cell is 8.89 times more volatile than Microbot Medical. It trades about 0.16 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.1 per unit of risk. If you would invest 0.34 in Living Cell Technologies on November 29, 2024 and sell it today you would earn a total of 0.29 from holding Living Cell Technologies or generate 85.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Living Cell Technologies vs. Microbot Medical
Performance |
| Timeline |
| Living Cell Technologies |
| Microbot Medical |
Living Cell and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Living Cell and Microbot Medical
The main advantage of trading using opposite Living Cell and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Living Cell 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.| Living Cell vs. SunOpta | Living Cell vs. Catalyst Pharmaceuticals | Living Cell vs. Inhibrx | Living Cell vs. Genfit |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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