Correlation Between Microbot Medical and WT OFFSHORE

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

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

Diversification Opportunities for Microbot Medical and WT OFFSHORE

0.34

Correlation Coefficient

Microbot Medical  WT OFFSHORE

Weak diversification

The 3 months correlation between Microbot and UWV is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of Microbot Medical i.e., Microbot Medical and WT OFFSHORE go up and down completely randomly.

Pair Corralation between Microbot Medical and WT OFFSHORE

Assuming the 90 days trading horizon Microbot Medical is expected to generate 6.56 times more return on investment than WT OFFSHORE. However, Microbot Medical is 6.56 times more volatile than WT OFFSHORE. It trades about 0.1 of its potential returns per unit of risk. WT OFFSHORE is currently generating about 0.02 per unit of risk. If you would invest  93.00  in Microbot Medical on December 22, 2024 and sell it today you would earn a total of  61.00  from holding Microbot Medical or generate 65.59% return on investment over 90 days.

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

Microbot Medical  vs.  WT OFFSHORE

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

WT OFFSHORE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WT OFFSHORE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, WT OFFSHORE 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 Microbot Medical and WT OFFSHORE

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

The idea behind Microbot Medical and WT OFFSHORE 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.

Check out your portfolio center.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.