Correlation Between Check Cap and Motus GI

Can any of the company-specific risk be diversified away by investing in both Check Cap and Motus GI 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 Check Cap and Motus GI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Check Cap and Motus GI Holdings, you can compare the effects of market volatilities on Check Cap and Motus GI 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 Check Cap with a short position of Motus GI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Cap and Motus GI.

Diversification Opportunities for Check Cap and Motus GI

0.77

Correlation Coefficient

Check Cap  Motus GI

Poor diversification

The 3 months correlation between Check and Motus is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Check Cap and Motus GI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motus GI Holdings and Check Cap 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 Check Cap are associated (or correlated) with Motus GI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motus GI Holdings has no effect on the direction of Check Cap i.e., Check Cap and Motus GI go up and down completely randomly.

Pair Corralation between Check Cap and Motus GI

If you would invest  65.00  in Motus GI Holdings on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Motus GI Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.55%
Values	Daily Returns

Check Cap  vs.  Motus GI Holdings

Check Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Check Cap has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Motus GI Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Motus GI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Motus GI is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Check Cap and Motus GI

The main advantage of trading using opposite Check Cap and Motus GI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Cap position performs unexpectedly, Motus GI 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 Motus GI will offset losses from the drop in Motus GI's long position.

The idea behind Check Cap and Motus GI Holdings 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.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.