Correlation Between Weyco and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Weyco 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 Weyco and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weyco Group and Microbot Medical, you can compare the effects of market volatilities on Weyco 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 Weyco with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weyco and Microbot Medical.
Diversification Opportunities for Weyco and Microbot Medical
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Weyco and Microbot is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Weyco Group and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Weyco 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 Weyco 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 Weyco i.e., Weyco and Microbot Medical go up and down completely randomly.
Pair Corralation between Weyco and Microbot Medical
Given the investment horizon of 90 days Weyco Group is expected to generate 1.01 times more return on investment than Microbot Medical. However, Weyco is 1.01 times more volatile than Microbot Medical. It trades about 0.04 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.01 per unit of risk. If you would invest 3,442 in Weyco Group on August 25, 2024 and sell it today you would earn a total of 203.00 from holding Weyco Group or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weyco Group vs. Microbot Medical
Performance |
| Timeline |
| Weyco Group |
| Microbot Medical |
Weyco and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weyco and Microbot Medical
The main advantage of trading using opposite Weyco and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weyco 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.The idea behind Weyco Group and Microbot Medical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Microbot Medical vs. Heartbeam | Microbot Medical vs. EUDA Health Holdings | Microbot Medical vs. Nutex Health | Microbot Medical vs. Healthcare Triangle |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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