Correlation Between Microbot Medical and SIVERS SEMICONDUCTORS

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

By analyzing existing cross correlation between Microbot Medical and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on Microbot Medical and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and SIVERS SEMICONDUCTORS.

Diversification Opportunities for Microbot Medical and SIVERS SEMICONDUCTORS

-0.45

Correlation Coefficient

Microbot Medical  SIVERS SEMICONDUCTORS

Very good diversification

The 3 months correlation between Microbot and SIVERS is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIVERS SEMICONDUCTORS has no effect on the direction of Microbot Medical i.e., Microbot Medical and SIVERS SEMICONDUCTORS go up and down completely randomly.

Pair Corralation between Microbot Medical and SIVERS SEMICONDUCTORS

Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.93 times more return on investment than SIVERS SEMICONDUCTORS. However, Microbot Medical is 1.93 times more volatile than SIVERS SEMICONDUCTORS AB. It trades about 0.01 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about 0.0 per unit of risk. If you would invest  333.00  in Microbot Medical on October 6, 2024 and sell it today you would lose (224.00) from holding Microbot Medical or give up 67.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Microbot Medical  vs.  SIVERS SEMICONDUCTORS AB

Microbot Medical

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SIVERS SEMICONDUCTORS AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS

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

The idea behind Microbot Medical and SIVERS SEMICONDUCTORS AB 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.