Correlation Between Microbot Medical and Braskem SA
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Braskem SA 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 Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Braskem SA Class, you can compare the effects of market volatilities on Microbot Medical and Braskem SA 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 Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Braskem SA.
Diversification Opportunities for Microbot Medical and Braskem SA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microbot and Braskem is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Braskem SA Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braskem SA Class 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 Braskem SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braskem SA Class has no effect on the direction of Microbot Medical i.e., Microbot Medical and Braskem SA go up and down completely randomly.
Pair Corralation between Microbot Medical and Braskem SA
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.78 times more return on investment than Braskem SA. However, Microbot Medical is 1.78 times more volatile than Braskem SA Class. It trades about -0.02 of its potential returns per unit of risk. Braskem SA Class is currently generating about -0.05 per unit of risk. If you would invest 261.00 in Microbot Medical on September 2, 2024 and sell it today you would lose (164.00) from holding Microbot Medical or give up 62.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Braskem SA Class
Performance |
| Timeline |
| Microbot Medical |
| Braskem SA Class |
Microbot Medical and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Braskem SA
The main advantage of trading using opposite Microbot Medical and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Braskem SA 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 Braskem SA will offset losses from the drop in Braskem SA's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
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 Stocks Directory module to find actively traded stocks across global markets.
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