Correlation Between Microbot Medical and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Siriuspoint 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 Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Siriuspoint, you can compare the effects of market volatilities on Microbot Medical and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Siriuspoint.
Diversification Opportunities for Microbot Medical and Siriuspoint
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microbot and Siriuspoint is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Microbot Medical i.e., Microbot Medical and Siriuspoint go up and down completely randomly.
Pair Corralation between Microbot Medical and Siriuspoint
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.49 times more return on investment than Siriuspoint. However, Microbot Medical is 1.49 times more volatile than Siriuspoint. It trades about 0.04 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.05 per unit of risk. If you would invest 95.00 in Microbot Medical on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Microbot Medical or generate 4.21% 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. Siriuspoint
Performance |
| Timeline |
| Microbot Medical |
| Siriuspoint |
Microbot Medical and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and Siriuspoint
The main advantage of trading using opposite Microbot Medical and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.The idea behind Microbot Medical and Siriuspoint pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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