Correlation Between Microbot Medical and Analog Devices
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Analog Devices 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 Microbot Medical and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Analog Devices, you can compare the effects of market volatilities on Microbot Medical and Analog Devices 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 Microbot Medical with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Analog Devices.
Diversification Opportunities for Microbot Medical and Analog Devices
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microbot and Analog is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and Microbot Medical 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 Microbot Medical are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of Microbot Medical i.e., Microbot Medical and Analog Devices go up and down completely randomly.
Pair Corralation between Microbot Medical and Analog Devices
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.88 times less return on investment than Analog Devices. In addition to that, Microbot Medical is 5.0 times more volatile than Analog Devices. It trades about 0.0 of its total potential returns per unit of risk. Analog Devices is currently generating about 0.05 per unit of volatility. If you would invest 15,647 in Analog Devices on September 14, 2024 and sell it today you would earn a total of 6,125 from holding Analog Devices or generate 39.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Analog Devices
Performance |
| Timeline |
| Microbot Medical |
| Analog Devices |
Microbot Medical and Analog Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Analog Devices
The main advantage of trading using opposite Microbot Medical and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Analog Devices vs. ON Semiconductor | Analog Devices vs. Globalfoundries | Analog Devices vs. Wisekey International Holding | Analog Devices vs. Nano Labs |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |