Correlation Between NTG Nordic and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both NTG Nordic 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 NTG Nordic and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and Microbot Medical, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Microbot Medical.
Diversification Opportunities for NTG Nordic and Microbot Medical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NTG and Microbot is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and Microbot Medical go up and down completely randomly.
Pair Corralation between NTG Nordic and Microbot Medical
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Microbot Medical. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 1.47 times less risky than Microbot Medical. The stock trades about -0.05 of its potential returns per unit of risk. The Microbot Medical is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Microbot Medical on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Microbot Medical or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NTG Nordic Transport vs. Microbot Medical
Performance |
| Timeline |
| NTG Nordic Transport |
| Microbot Medical |
NTG Nordic and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Microbot Medical
The main advantage of trading using opposite NTG Nordic and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Lifeway Foods | NTG Nordic vs. PT Indofood Sukses | NTG Nordic vs. TreeHouse Foods | NTG Nordic vs. ADRIATIC METALS LS 013355 |
| Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc | Microbot Medical vs. Apple Inc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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