Correlation Between Microbot Medical and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and ICU Medical 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 ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and ICU Medical, you can compare the effects of market volatilities on Microbot Medical and ICU Medical 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 ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and ICU Medical.
Diversification Opportunities for Microbot Medical and ICU Medical
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microbot and ICU is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical 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 ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Microbot Medical i.e., Microbot Medical and ICU Medical go up and down completely randomly.
Pair Corralation between Microbot Medical and ICU Medical
Given the investment horizon of 90 days Microbot Medical is expected to generate 12.38 times more return on investment than ICU Medical. However, Microbot Medical is 12.38 times more volatile than ICU Medical. It trades about 0.19 of its potential returns per unit of risk. ICU Medical is currently generating about 0.11 per unit of risk. If you would invest 114.00 in Microbot Medical on November 3, 2024 and sell it today you would earn a total of 70.00 from holding Microbot Medical or generate 61.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Microbot Medical vs. ICU Medical
Performance |
| Timeline |
| Microbot Medical |
| ICU Medical |
Microbot Medical and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and ICU Medical
The main advantage of trading using opposite Microbot Medical and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, ICU Medical 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |