Correlation Between Microbot Medical and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Inflection Point Acquisition, you can compare the effects of market volatilities on Microbot Medical and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Inflection Point.
Diversification Opportunities for Microbot Medical and Inflection Point
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Microbot and Inflection is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Microbot Medical i.e., Microbot Medical and Inflection Point go up and down completely randomly.
Pair Corralation between Microbot Medical and Inflection Point
Given the investment horizon of 90 days Microbot Medical is expected to generate 10.04 times more return on investment than Inflection Point. However, Microbot Medical is 10.04 times more volatile than Inflection Point Acquisition. It trades about 0.05 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.22 per unit of risk. If you would invest 95.00 in Microbot Medical on September 1, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Inflection Point Acquisition
Performance |
| Timeline |
| Microbot Medical |
| Inflection Point Acq |
Microbot Medical and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Inflection Point
The main advantage of trading using opposite Microbot Medical and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Inflection Point vs. Aterian | Inflection Point vs. Church Dwight | Inflection Point vs. Mannatech Incorporated | Inflection Point vs. Saia Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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