Correlation Between Microbot Medical and Green Shift
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Green Shift 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 Green Shift into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Green Shift Commodities, you can compare the effects of market volatilities on Microbot Medical and Green Shift 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 Green Shift. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Green Shift.
Diversification Opportunities for Microbot Medical and Green Shift
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Microbot and Green is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Green Shift Commodities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Shift Commodities 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 Green Shift. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Shift Commodities has no effect on the direction of Microbot Medical i.e., Microbot Medical and Green Shift go up and down completely randomly.
Pair Corralation between Microbot Medical and Green Shift
Given the investment horizon of 90 days Microbot Medical is expected to generate 0.48 times more return on investment than Green Shift. However, Microbot Medical is 2.06 times less risky than Green Shift. It trades about 0.1 of its potential returns per unit of risk. Green Shift Commodities is currently generating about -0.1 per unit of risk. If you would invest 89.00 in Microbot Medical on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Microbot Medical or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Microbot Medical vs. Green Shift Commodities
Performance |
| Timeline |
| Microbot Medical |
| Green Shift Commodities |
Microbot Medical and Green Shift Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Green Shift
The main advantage of trading using opposite Microbot Medical and Green Shift positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Green Shift 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 Green Shift will offset losses from the drop in Green Shift's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Green Shift vs. Solstad Offshore ASA | Green Shift vs. Celsius Holdings | Green Shift vs. Microbot Medical | Green Shift vs. BW Offshore Limited |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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