Correlation Between Microbot Medical and Bank of America
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Bank of America 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 Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Bank of America, you can compare the effects of market volatilities on Microbot Medical and Bank of America 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 Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Bank of America.
Diversification Opportunities for Microbot Medical and Bank of America
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microbot and Bank is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America 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 Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of Microbot Medical i.e., Microbot Medical and Bank of America go up and down completely randomly.
Pair Corralation between Microbot Medical and Bank of America
Given the investment horizon of 90 days Microbot Medical is expected to under-perform the Bank of America. In addition to that, Microbot Medical is 7.77 times more volatile than Bank of America. It trades about -0.02 of its total potential returns per unit of risk. Bank of America is currently generating about 0.06 per unit of volatility. If you would invest 108,114 in Bank of America on August 31, 2024 and sell it today you would earn a total of 16,836 from holding Bank of America or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Microbot Medical vs. Bank of America
Performance |
| Timeline |
| Microbot Medical |
| Bank of America |
Microbot Medical and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Bank of America
The main advantage of trading using opposite Microbot Medical and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Bank of America vs. Citizens Bancorp Investment | Bank of America vs. Independence Realty Trust | Bank of America vs. Freedom Holding Corp | Bank of America vs. Western Acquisition Ventures |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |