Correlation Between Microbot Medical and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and KLA Tencor 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 KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and KLA Tencor, you can compare the effects of market volatilities on Microbot Medical and KLA Tencor 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 KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and KLA Tencor.
Diversification Opportunities for Microbot Medical and KLA Tencor
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microbot and KLA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor 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 KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Microbot Medical i.e., Microbot Medical and KLA Tencor go up and down completely randomly.
Pair Corralation between Microbot Medical and KLA Tencor
Given the investment horizon of 90 days Microbot Medical is expected to generate 0.91 times more return on investment than KLA Tencor. However, Microbot Medical is 1.1 times less risky than KLA Tencor. It trades about 0.05 of its potential returns per unit of risk. KLA Tencor is currently generating about -0.19 per unit of risk. If you would invest 96.00 in Microbot Medical on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Microbot Medical or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Microbot Medical vs. KLA Tencor
Performance |
| Timeline |
| Microbot Medical |
| KLA Tencor |
Microbot Medical and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and KLA Tencor
The main advantage of trading using opposite Microbot Medical and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, KLA Tencor 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 KLA Tencor will offset losses from the drop in KLA Tencor's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |