Correlation Between Microbot Medical and Lendlease

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

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

Diversification Opportunities for Microbot Medical and Lendlease

-0.57

Correlation Coefficient

Microbot Medical  Lendlease

Excellent diversification

The 3 months correlation between Microbot and Lendlease is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Microbot Medical i.e., Microbot Medical and Lendlease go up and down completely randomly.

Pair Corralation between Microbot Medical and Lendlease

Assuming the 90 days trading horizon Microbot Medical is expected to generate 15.07 times more return on investment than Lendlease. However, Microbot Medical is 15.07 times more volatile than Lendlease Group. It trades about 0.1 of its potential returns per unit of risk. Lendlease Group is currently generating about -0.09 per unit of risk. If you would invest  93.00  in Microbot Medical on October 23, 2024 and sell it today you would earn a total of  63.00  from holding Microbot Medical or generate 67.74% return on investment over 90 days.

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

Microbot Medical  vs.  Lendlease Group

Microbot Medical

Risk-Adjusted Performance

7 of 100

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 uncertain basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lendlease Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lendlease Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Microbot Medical and Lendlease

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

The idea behind Microbot Medical and Lendlease Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.