Correlation Between Microbot Medical and National Vision
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and National Vision 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 National Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and National Vision Holdings, you can compare the effects of market volatilities on Microbot Medical and National Vision 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 National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and National Vision.
Diversification Opportunities for Microbot Medical and National Vision
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microbot and National is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision Holdings 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 National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of Microbot Medical i.e., Microbot Medical and National Vision go up and down completely randomly.
Pair Corralation between Microbot Medical and National Vision
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.12 times more return on investment than National Vision. However, Microbot Medical is 1.12 times more volatile than National Vision Holdings. It trades about 0.09 of its potential returns per unit of risk. National Vision Holdings is currently generating about 0.09 per unit of risk. If you would invest 93.00 in Microbot Medical on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Microbot Medical or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. National Vision Holdings
Performance |
| Timeline |
| Microbot Medical |
| National Vision Holdings |
Microbot Medical and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and National Vision
The main advantage of trading using opposite Microbot Medical and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, National Vision 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 National Vision will offset losses from the drop in National Vision's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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