Correlation Between Platinum Investment and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Platinum Investment 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 Platinum Investment and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and Microbot Medical, you can compare the effects of market volatilities on Platinum Investment 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 Platinum Investment with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and Microbot Medical.
Diversification Opportunities for Platinum Investment and Microbot Medical
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Platinum and Microbot is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Platinum Investment 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 Platinum Investment Management 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 Platinum Investment i.e., Platinum Investment and Microbot Medical go up and down completely randomly.
Pair Corralation between Platinum Investment and Microbot Medical
Assuming the 90 days horizon Platinum Investment Management is expected to under-perform the Microbot Medical. In addition to that, Platinum Investment is 1.06 times more volatile than Microbot Medical. It trades about -0.03 of its total potential returns per unit of risk. Microbot Medical is currently generating about 0.07 per unit of volatility. If you would invest 86.00 in Microbot Medical on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Microbot Medical or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Platinum Investment Management vs. Microbot Medical
Performance |
| Timeline |
| Platinum Investment |
| Microbot Medical |
Platinum Investment and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and Microbot Medical
The main advantage of trading using opposite Platinum Investment and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment 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.| Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. Ares Management Corp | Platinum Investment vs. Superior Plus Corp | Platinum Investment vs. SIVERS SEMICONDUCTORS AB |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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