Correlation Between Microbot Medical and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Marfrig Global 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 Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Marfrig Global Foods, you can compare the effects of market volatilities on Microbot Medical and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Marfrig Global.
Diversification Opportunities for Microbot Medical and Marfrig Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microbot and Marfrig is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods 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 Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of Microbot Medical i.e., Microbot Medical and Marfrig Global go up and down completely randomly.
Pair Corralation between Microbot Medical and Marfrig Global
Given the investment horizon of 90 days Microbot Medical is expected to under-perform the Marfrig Global. But the stock apears to be less risky and, when comparing its historical volatility, Microbot Medical is 1.15 times less risky than Marfrig Global. The stock trades about -0.04 of its potential returns per unit of risk. The Marfrig Global Foods is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 207.00 in Marfrig Global Foods on September 3, 2024 and sell it today you would earn a total of 98.00 from holding Marfrig Global Foods or generate 47.34% 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. Marfrig Global Foods
Performance |
| Timeline |
| Microbot Medical |
| Marfrig Global Foods |
Microbot Medical and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Marfrig Global
The main advantage of trading using opposite Microbot Medical and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Marfrig Global vs. BRF SA ADR | Marfrig Global vs. Pilgrims Pride Corp | Marfrig Global vs. John B Sanfilippo | Marfrig Global vs. Seneca Foods Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |