Correlation Between Microbot Medical and Ihuman
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Ihuman Inc, you can compare the effects of market volatilities on Microbot Medical and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Ihuman.
Diversification Opportunities for Microbot Medical and Ihuman
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microbot and Ihuman is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Microbot Medical i.e., Microbot Medical and Ihuman go up and down completely randomly.
Pair Corralation between Microbot Medical and Ihuman
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.22 times more return on investment than Ihuman. However, Microbot Medical is 1.22 times more volatile than Ihuman Inc. It trades about 0.05 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.14 per unit of risk. If you would invest 95.00 in Microbot Medical on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Microbot Medical or generate 2.11% 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. Ihuman Inc
Performance |
| Timeline |
| Microbot Medical |
| Ihuman Inc |
Microbot Medical and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Ihuman
The main advantage of trading using opposite Microbot Medical and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Ihuman vs. Wah Fu Education | Ihuman vs. Golden Sun Education | Ihuman vs. Elite Education Group | Ihuman vs. American Public Education |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |