Correlation Between Maiden Holdings and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Maiden Holdings and Microbot Medical 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 Maiden Holdings and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maiden Holdings and Microbot Medical, you can compare the effects of market volatilities on Maiden Holdings and Microbot Medical 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 Maiden Holdings with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maiden Holdings and Microbot Medical.
Diversification Opportunities for Maiden Holdings and Microbot Medical
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maiden and Microbot is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Maiden Holdings and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Maiden Holdings 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 Maiden Holdings are associated (or correlated) with Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Maiden Holdings i.e., Maiden Holdings and Microbot Medical go up and down completely randomly.
Pair Corralation between Maiden Holdings and Microbot Medical
Given the investment horizon of 90 days Maiden Holdings is expected to under-perform the Microbot Medical. But the stock apears to be less risky and, when comparing its historical volatility, Maiden Holdings is 3.42 times less risky than Microbot Medical. The stock trades about -0.09 of its potential returns per unit of risk. The Microbot Medical is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 167.00 in Microbot Medical on January 18, 2025 and sell it today you would earn a total of 82.00 from holding Microbot Medical or generate 49.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maiden Holdings vs. Microbot Medical
Performance |
| Timeline |
| Maiden Holdings |
| Microbot Medical |
Maiden Holdings and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maiden Holdings and Microbot Medical
The main advantage of trading using opposite Maiden Holdings and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maiden Holdings position performs unexpectedly, Microbot Medical 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
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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