Correlation Between Microbot Medical and Neogen
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Neogen 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 Neogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Neogen, you can compare the effects of market volatilities on Microbot Medical and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Neogen.
Diversification Opportunities for Microbot Medical and Neogen
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Microbot and Neogen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of Microbot Medical i.e., Microbot Medical and Neogen go up and down completely randomly.
Pair Corralation between Microbot Medical and Neogen
Given the investment horizon of 90 days Microbot Medical is expected to under-perform the Neogen. In addition to that, Microbot Medical is 1.08 times more volatile than Neogen. It trades about -0.07 of its total potential returns per unit of risk. Neogen is currently generating about 0.02 per unit of volatility. If you would invest 1,372 in Neogen on September 1, 2024 and sell it today you would earn a total of 46.00 from holding Neogen or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Neogen
Performance |
| Timeline |
| Microbot Medical |
| Neogen |
Microbot Medical and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Neogen
The main advantage of trading using opposite Microbot Medical and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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