Correlation Between Microbot Medical and MYFAIR GOLD

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

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

Diversification Opportunities for Microbot Medical and MYFAIR GOLD

-0.33

Correlation Coefficient

Microbot Medical  MYFAIR GOLD

Very good diversification

The 3 months correlation between Microbot and MYFAIR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P 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 MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of Microbot Medical i.e., Microbot Medical and MYFAIR GOLD go up and down completely randomly.

Pair Corralation between Microbot Medical and MYFAIR GOLD

Assuming the 90 days trading horizon Microbot Medical is expected to generate 28.19 times more return on investment than MYFAIR GOLD. However, Microbot Medical is 28.19 times more volatile than MYFAIR GOLD P. It trades about 0.2 of its potential returns per unit of risk. MYFAIR GOLD P is currently generating about 0.11 per unit of risk. If you would invest  93.00  in Microbot Medical on October 22, 2024 and sell it today you would earn a total of  79.00  from holding Microbot Medical or generate 84.95% return on investment over 90 days.

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

Microbot Medical  vs.  MYFAIR GOLD P

Microbot Medical

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 8 (%) 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.

MYFAIR GOLD P

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Microbot Medical and MYFAIR GOLD

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

The idea behind Microbot Medical and MYFAIR GOLD P 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.