Correlation Between Microbot Medical and Hologic
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Hologic 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 Hologic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Hologic, you can compare the effects of market volatilities on Microbot Medical and Hologic 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 Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Hologic.
Diversification Opportunities for Microbot Medical and Hologic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microbot and Hologic is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic 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 Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of Microbot Medical i.e., Microbot Medical and Hologic go up and down completely randomly.
Pair Corralation between Microbot Medical and Hologic
Given the investment horizon of 90 days Microbot Medical is expected to generate 2.28 times more return on investment than Hologic. However, Microbot Medical is 2.28 times more volatile than Hologic. It trades about 0.12 of its potential returns per unit of risk. Hologic is currently generating about -0.02 per unit of risk. If you would invest 86.00 in Microbot Medical on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Microbot Medical or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Hologic
Performance |
| Timeline |
| Microbot Medical |
| Hologic |
Microbot Medical and Hologic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Hologic
The main advantage of trading using opposite Microbot Medical and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.| Microbot Medical vs. Heartbeam | Microbot Medical vs. EUDA Health Holdings | Microbot Medical vs. Nutex Health | Microbot Medical vs. Healthcare Triangle |
| Hologic vs. Haemonetics | Hologic vs. ICU Medical | Hologic vs. Envista Holdings Corp | Hologic vs. The Cooper Companies, |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |