Correlation Between Microbot Medical and BioLife Sciences
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and BioLife Sciences 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 BioLife Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and BioLife Sciences, you can compare the effects of market volatilities on Microbot Medical and BioLife Sciences 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 BioLife Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and BioLife Sciences.
Diversification Opportunities for Microbot Medical and BioLife Sciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microbot and BioLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and BioLife Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Sciences 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 BioLife Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Sciences has no effect on the direction of Microbot Medical i.e., Microbot Medical and BioLife Sciences go up and down completely randomly.
Pair Corralation between Microbot Medical and BioLife Sciences
Given the investment horizon of 90 days Microbot Medical is expected to generate 42.52 times less return on investment than BioLife Sciences. But when comparing it to its historical volatility, Microbot Medical is 9.33 times less risky than BioLife Sciences. It trades about 0.03 of its potential returns per unit of risk. BioLife Sciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.20 in BioLife Sciences on November 2, 2024 and sell it today you would lose (0.19) from holding BioLife Sciences or give up 95.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Microbot Medical vs. BioLife Sciences
Performance |
| Timeline |
| Microbot Medical |
| BioLife Sciences |
Microbot Medical and BioLife Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and BioLife Sciences
The main advantage of trading using opposite Microbot Medical and BioLife Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, BioLife Sciences 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 BioLife Sciences will offset losses from the drop in BioLife Sciences' long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| BioLife Sciences vs. Innerscope Advertising Agency | BioLife Sciences vs. CeCors Inc | BioLife Sciences vs. GlucoTrack | BioLife Sciences vs. Sharps Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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