Correlation Between Microbot Medical and 054561AM7

Can any of the company-specific risk be diversified away by investing in both Microbot Medical and 054561AM7 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 054561AM7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Microbot Medical and AXA EQUITABLE HLDGS, you can compare the effects of market volatilities on Microbot Medical and 054561AM7 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 054561AM7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and 054561AM7.

Diversification Opportunities for Microbot Medical and 054561AM7

-0.63

Correlation Coefficient

Microbot Medical  054561AM7

Excellent diversification

The 3 months correlation between Microbot and 054561AM7 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and AXA EQUITABLE HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA EQUITABLE HLDGS 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 054561AM7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA EQUITABLE HLDGS has no effect on the direction of Microbot Medical i.e., Microbot Medical and 054561AM7 go up and down completely randomly.

Pair Corralation between Microbot Medical and 054561AM7

Given the investment horizon of 90 days Microbot Medical is expected to generate 12.71 times more return on investment than 054561AM7. However, Microbot Medical is 12.71 times more volatile than AXA EQUITABLE HLDGS. It trades about 0.11 of its potential returns per unit of risk. AXA EQUITABLE HLDGS is currently generating about -0.03 per unit of risk. If you would invest  97.00  in Microbot Medical on November 29, 2024 and sell it today you would earn a total of  55.00  from holding Microbot Medical or generate 56.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	81.36%
Values	Daily Returns

Microbot Medical  vs.  AXA EQUITABLE HLDGS

Microbot Medical

Risk-Adjusted Performance

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

AXA EQUITABLE HLDGS

Risk-Adjusted Performance

Very Weak

Over the last 90 days AXA EQUITABLE HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 054561AM7 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Microbot Medical and 054561AM7

The main advantage of trading using opposite Microbot Medical and 054561AM7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, 054561AM7 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 054561AM7 will offset losses from the drop in 054561AM7's long position.

The idea behind Microbot Medical and AXA EQUITABLE HLDGS 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .