Correlation Between Microbot Medical and PEPTONIC MEDICAL

Can any of the company-specific risk be diversified away by investing in both Microbot Medical and PEPTONIC 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 Microbot Medical and PEPTONIC MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Microbot Medical and PEPTONIC MEDICAL

0.0

Correlation Coefficient

Microbot Medical  PEPTONIC MEDICAL

Pay attention - limited upside

The 3 months correlation between Microbot and PEPTONIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and PEPTONIC MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPTONIC MEDICAL and Microbot Medical 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 Microbot Medical are associated (or correlated) with PEPTONIC MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPTONIC MEDICAL has no effect on the direction of Microbot Medical i.e., Microbot Medical and PEPTONIC MEDICAL go up and down completely randomly.

Pair Corralation between Microbot Medical and PEPTONIC MEDICAL

If you would invest  100.00  in Microbot Medical on December 24, 2024 and sell it today you would earn a total of  52.00  from holding Microbot Medical or generate 52.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Microbot Medical  vs.  PEPTONIC MEDICAL

Microbot Medical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

PEPTONIC MEDICAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days PEPTONIC MEDICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PEPTONIC MEDICAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Microbot Medical and PEPTONIC MEDICAL

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

The idea behind Microbot Medical and PEPTONIC 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.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.