Correlation Between Microbot Medical and ATOSS SOFTWARE

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

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

Diversification Opportunities for Microbot Medical and ATOSS SOFTWARE

-0.22

Correlation Coefficient

Microbot Medical  ATOSS SOFTWARE

Very good diversification

The 3 months correlation between Microbot and ATOSS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE 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 ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of Microbot Medical i.e., Microbot Medical and ATOSS SOFTWARE go up and down completely randomly.

Pair Corralation between Microbot Medical and ATOSS SOFTWARE

Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.12 times more return on investment than ATOSS SOFTWARE. However, Microbot Medical is 1.12 times more volatile than ATOSS SOFTWARE. It trades about 0.14 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about -0.07 per unit of risk. If you would invest  75.00  in Microbot Medical on September 4, 2024 and sell it today you would earn a total of  19.00  from holding Microbot Medical or generate 25.33% return on investment over 90 days.

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

Microbot Medical  vs.  ATOSS SOFTWARE

Microbot Medical

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

ATOSS SOFTWARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Microbot Medical and ATOSS SOFTWARE

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

The idea behind Microbot Medical and ATOSS SOFTWARE 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.