Correlation Between Microbot Medical and First Ship
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and First Ship 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 First Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and First Ship Lease, you can compare the effects of market volatilities on Microbot Medical and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and First Ship.
Diversification Opportunities for Microbot Medical and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microbot and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of Microbot Medical i.e., Microbot Medical and First Ship go up and down completely randomly.
Pair Corralation between Microbot Medical and First Ship
If you would invest 97.00 in Microbot Medical on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Microbot Medical or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. First Ship Lease
Performance |
| Timeline |
| Microbot Medical |
| First Ship Lease |
Microbot Medical and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and First Ship
The main advantage of trading using opposite Microbot Medical and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.The idea behind Microbot Medical and First Ship Lease pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| First Ship vs. Kinetik Holdings | First Ship vs. Century Aluminum | First Ship vs. ArcelorMittal SA ADR | First Ship vs. WEC Energy Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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