Correlation Between Microbot Medical and Integral

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

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

Diversification Opportunities for Microbot Medical and Integral

-0.08

Correlation Coefficient

Microbot Medical  Integral

Good diversification

The 3 months correlation between Microbot and Integral is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Microbot Medical i.e., Microbot Medical and Integral go up and down completely randomly.

Pair Corralation between Microbot Medical and Integral

Given the investment horizon of 90 days Microbot Medical is expected to generate 1.52 times more return on investment than Integral. However, Microbot Medical is 1.52 times more volatile than Integral Ad Science. It trades about 0.02 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.01 per unit of risk. If you would invest  125.00  in Microbot Medical on October 3, 2024 and sell it today you would lose (13.00) from holding Microbot Medical or give up 10.4% of portfolio value over 90 days.

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

Microbot Medical  vs.  Integral Ad Science

Microbot Medical

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Integral Ad Science

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Microbot Medical and Integral

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

The idea behind Microbot Medical and Integral Ad Science 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.