Correlation Between Microbot Medical and HEALTHPEAK

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

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

Diversification Opportunities for Microbot Medical and HEALTHPEAK

-0.48

Correlation Coefficient

Microbot Medical  HEALTHPEAK

Very good diversification

The 3 months correlation between Microbot and HEALTHPEAK is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and HEALTHPEAK PROPERTIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHPEAK PROPERTIES INC 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 HEALTHPEAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHPEAK PROPERTIES INC has no effect on the direction of Microbot Medical i.e., Microbot Medical and HEALTHPEAK go up and down completely randomly.

Pair Corralation between Microbot Medical and HEALTHPEAK

Given the investment horizon of 90 days Microbot Medical is expected to generate 4.41 times more return on investment than HEALTHPEAK. However, Microbot Medical is 4.41 times more volatile than HEALTHPEAK PROPERTIES INC. It trades about 0.03 of its potential returns per unit of risk. HEALTHPEAK PROPERTIES INC is currently generating about -0.32 per unit of risk. If you would invest  99.00  in Microbot Medical on September 25, 2024 and sell it today you would earn a total of  1.00  from holding Microbot Medical or generate 1.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	90.48%
Values	Daily Returns

Microbot Medical  vs.  HEALTHPEAK PROPERTIES INC

Microbot Medical

Risk-Adjusted Performance

7 of 100

Modest

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

HEALTHPEAK PROPERTIES INC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Microbot Medical and HEALTHPEAK

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

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