Correlation Between Microbot Medical and Rxsight
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Rxsight 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 Rxsight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Rxsight, you can compare the effects of market volatilities on Microbot Medical and Rxsight 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 Rxsight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Rxsight.
Diversification Opportunities for Microbot Medical and Rxsight
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Microbot and Rxsight is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Rxsight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rxsight 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 Rxsight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rxsight has no effect on the direction of Microbot Medical i.e., Microbot Medical and Rxsight go up and down completely randomly.
Pair Corralation between Microbot Medical and Rxsight
Given the investment horizon of 90 days Microbot Medical is expected to generate 3.15 times more return on investment than Rxsight. However, Microbot Medical is 3.15 times more volatile than Rxsight. It trades about 0.03 of its potential returns per unit of risk. Rxsight is currently generating about 0.07 per unit of risk. If you would invest 299.00 in Microbot Medical on November 9, 2024 and sell it today you would lose (82.00) from holding Microbot Medical or give up 27.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. Rxsight
Performance |
| Timeline |
| Microbot Medical |
| Rxsight |
Microbot Medical and Rxsight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Rxsight
The main advantage of trading using opposite Microbot Medical and Rxsight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Rxsight 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 Rxsight will offset losses from the drop in Rxsight's long position.| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
| Rxsight vs. Axogen Inc | Rxsight vs. Treace Medical Concepts | Rxsight vs. Pulmonx Corp | Rxsight vs. Orthofix Medical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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