Correlation Between Singapore Reinsurance and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance 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 Singapore Reinsurance and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and Microbot Medical, you can compare the effects of market volatilities on Singapore Reinsurance 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 Singapore Reinsurance with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and Microbot Medical.
Diversification Opportunities for Singapore Reinsurance and Microbot Medical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and Microbot is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Singapore Reinsurance 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 Singapore Reinsurance 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 Singapore Reinsurance i.e., Singapore Reinsurance and Microbot Medical go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and Microbot Medical
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.0 times more return on investment than Microbot Medical. However, Singapore Reinsurance is 1.0 times more volatile than Microbot Medical. It trades about 0.18 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.1 per unit of risk. If you would invest 3,140 in Singapore Reinsurance on September 1, 2024 and sell it today you would earn a total of 340.00 from holding Singapore Reinsurance or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Reinsurance vs. Microbot Medical
Performance |
| Timeline |
| Singapore Reinsurance |
| Microbot Medical |
Singapore Reinsurance and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and Microbot Medical
The main advantage of trading using opposite Singapore Reinsurance and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance 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.| Singapore Reinsurance vs. SIVERS SEMICONDUCTORS AB | Singapore Reinsurance vs. Darden Restaurants | Singapore Reinsurance vs. Reliance Steel Aluminum | Singapore Reinsurance vs. Q2M Managementberatung AG |
| Microbot Medical vs. MEDICAL FACILITIES NEW | Microbot Medical vs. Compugroup Medical SE | Microbot Medical vs. RETAIL FOOD GROUP | Microbot Medical vs. Pick n Pay |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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