Correlation Between Microbot Medical and NESNVX

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

By analyzing existing cross correlation between Microbot Medical and NESNVX 1 15 SEP 27, you can compare the effects of market volatilities on Microbot Medical and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and NESNVX.

Diversification Opportunities for Microbot Medical and NESNVX

-0.01

Correlation Coefficient

Microbot Medical  NESNVX

Good diversification

The 3 months correlation between Microbot and NESNVX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and NESNVX 1 15 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 1 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 1 15 has no effect on the direction of Microbot Medical i.e., Microbot Medical and NESNVX go up and down completely randomly.

Pair Corralation between Microbot Medical and NESNVX

Given the investment horizon of 90 days Microbot Medical is expected to generate 13.85 times more return on investment than NESNVX. However, Microbot Medical is 13.85 times more volatile than NESNVX 1 15 SEP 27. It trades about 0.27 of its potential returns per unit of risk. NESNVX 1 15 SEP 27 is currently generating about -0.3 per unit of risk. If you would invest  95.00  in Microbot Medical on October 6, 2024 and sell it today you would earn a total of  119.00  from holding Microbot Medical or generate 125.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.0%
Values	Daily Returns

Microbot Medical  vs.  NESNVX 1 15 SEP 27

Microbot Medical

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 12 (%) 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.

NESNVX 1 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 1 15 SEP 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating 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 NESNVX 1 15 SEP 27 investors.

Pair Trading with Microbot Medical and NESNVX

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

The idea behind Microbot Medical and NESNVX 1 15 SEP 27 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.