Correlation Between Microbot Medical and 482480AM2

Can any of the company-specific risk be diversified away by investing in both Microbot Medical and 482480AM2 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 482480AM2 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Microbot Medical and KLAC 495 15 JUL 52, you can compare the effects of market volatilities on Microbot Medical and 482480AM2 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 482480AM2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and 482480AM2.

Diversification Opportunities for Microbot Medical and 482480AM2

-0.15

Correlation Coefficient

Microbot Medical  482480AM2

Good diversification

The 3 months correlation between Microbot and 482480AM2 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and KLAC 495 15 JUL 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLAC 495 15 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 482480AM2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLAC 495 15 has no effect on the direction of Microbot Medical i.e., Microbot Medical and 482480AM2 go up and down completely randomly.

Pair Corralation between Microbot Medical and 482480AM2

Given the investment horizon of 90 days Microbot Medical is expected to generate 2.02 times more return on investment than 482480AM2. However, Microbot Medical is 2.02 times more volatile than KLAC 495 15 JUL 52. It trades about 0.04 of its potential returns per unit of risk. KLAC 495 15 JUL 52 is currently generating about -0.1 per unit of risk. If you would invest  96.00  in Microbot Medical on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Microbot Medical or generate 4.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Microbot Medical  vs.  KLAC 495 15 JUL 52

Microbot Medical

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Microbot Medical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

KLAC 495 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KLAC 495 15 JUL 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for KLAC 495 15 JUL 52 investors.

Pair Trading with Microbot Medical and 482480AM2

The main advantage of trading using opposite Microbot Medical and 482480AM2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, 482480AM2 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 482480AM2 will offset losses from the drop in 482480AM2's long position.

The idea behind Microbot Medical and KLAC 495 15 JUL 52 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..