Correlation Between Neogen and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Neogen 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 Neogen and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Microbot Medical, you can compare the effects of market volatilities on Neogen 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 Neogen with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Microbot Medical.
Diversification Opportunities for Neogen and Microbot Medical
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neogen and Microbot is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Neogen 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 Neogen 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 Neogen i.e., Neogen and Microbot Medical go up and down completely randomly.
Pair Corralation between Neogen and Microbot Medical
Given the investment horizon of 90 days Neogen is expected to generate 0.93 times more return on investment than Microbot Medical. However, Neogen is 1.08 times less risky than Microbot Medical. It trades about 0.02 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.07 per unit of risk. 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 |
Neogen vs. Microbot Medical
Performance |
| Timeline |
| Neogen |
| Microbot Medical |
Neogen and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Microbot Medical
The main advantage of trading using opposite Neogen and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen 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.| Neogen vs. Qiagen NV | Neogen vs. Aclaris Therapeutics | Neogen vs. IQVIA Holdings | Neogen vs. Medpace Holdings |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |