Correlation Between Simon Property and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Simon Property 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 Simon Property and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Microbot Medical, you can compare the effects of market volatilities on Simon Property 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 Simon Property with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Microbot Medical.
Diversification Opportunities for Simon Property and Microbot Medical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simon and Microbot is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Simon Property 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 Simon Property Group 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 Simon Property i.e., Simon Property and Microbot Medical go up and down completely randomly.
Pair Corralation between Simon Property and Microbot Medical
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.32 times more return on investment than Microbot Medical. However, Simon Property Group is 3.16 times less risky than Microbot Medical. It trades about 0.36 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.09 per unit of risk. If you would invest 17,216 in Simon Property Group on September 3, 2024 and sell it today you would earn a total of 1,144 from holding Simon Property Group or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Microbot Medical
Performance |
| Timeline |
| Simon Property Group |
| Microbot Medical |
Simon Property and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Microbot Medical
The main advantage of trading using opposite Simon Property and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property 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.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| 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.
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