Correlation Between NETGEAR and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both NETGEAR 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 NETGEAR and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Microbot Medical, you can compare the effects of market volatilities on NETGEAR 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 NETGEAR with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Microbot Medical.
Diversification Opportunities for NETGEAR and Microbot Medical
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NETGEAR and Microbot is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and NETGEAR 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 NETGEAR 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 NETGEAR i.e., NETGEAR and Microbot Medical go up and down completely randomly.
Pair Corralation between NETGEAR and Microbot Medical
Given the investment horizon of 90 days NETGEAR is expected to generate 0.32 times more return on investment than Microbot Medical. However, NETGEAR is 3.08 times less risky than Microbot Medical. It trades about 0.03 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.0 per unit of risk. If you would invest 2,067 in NETGEAR on September 3, 2024 and sell it today you would earn a total of 393.00 from holding NETGEAR or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Microbot Medical
Performance |
| Timeline |
| NETGEAR |
| Microbot Medical |
NETGEAR and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Microbot Medical
The main advantage of trading using opposite NETGEAR and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR 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.| NETGEAR vs. Hewlett Packard Enterprise | NETGEAR vs. Juniper Networks | NETGEAR vs. Motorola Solutions | NETGEAR vs. Cisco Systems |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |