Correlation Between Microbot Medical and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Mativ Holdings 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 Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Mativ Holdings, you can compare the effects of market volatilities on Microbot Medical and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Mativ Holdings.
Diversification Opportunities for Microbot Medical and Mativ Holdings
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microbot and Mativ is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Microbot Medical i.e., Microbot Medical and Mativ Holdings go up and down completely randomly.
Pair Corralation between Microbot Medical and Mativ Holdings
Given the investment horizon of 90 days Microbot Medical is expected to generate 0.51 times more return on investment than Mativ Holdings. However, Microbot Medical is 1.96 times less risky than Mativ Holdings. It trades about 0.01 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.12 per unit of risk. If you would invest 98.00 in Microbot Medical on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Microbot Medical or generate 0.0% 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. Mativ Holdings
Performance |
| Timeline |
| Microbot Medical |
| Mativ Holdings |
Microbot Medical and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Mativ Holdings
The main advantage of trading using opposite Microbot Medical and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Microbot Medical vs. Heartbeam | Microbot Medical vs. EUDA Health Holdings | Microbot Medical vs. Nutex Health | Microbot Medical vs. Healthcare Triangle |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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