Correlation Between ELMOS SEMICONDUCTOR and Microbot Medical

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

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

Diversification Opportunities for ELMOS SEMICONDUCTOR and Microbot Medical

-0.16

Correlation Coefficient

ELMOS SEMICONDUCTOR  Microbot Medical

Good diversification

The 3 months correlation between ELMOS and Microbot is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ELMOS SEMICONDUCTOR and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR are associated (or correlated) with Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of ELMOS SEMICONDUCTOR i.e., ELMOS SEMICONDUCTOR and Microbot Medical go up and down completely randomly.

Pair Corralation between ELMOS SEMICONDUCTOR and Microbot Medical

Assuming the 90 days trading horizon ELMOS SEMICONDUCTOR is expected to generate 3.36 times less return on investment than Microbot Medical. In addition to that, ELMOS SEMICONDUCTOR is 1.09 times more volatile than Microbot Medical. It trades about 0.01 of its total potential returns per unit of risk. Microbot Medical is currently generating about 0.05 per unit of volatility. If you would invest  87.00  in Microbot Medical on September 14, 2024 and sell it today you would earn a total of  7.00  from holding Microbot Medical or generate 8.05% return on investment over 90 days.

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

ELMOS SEMICONDUCTOR  vs.  Microbot Medical

ELMOS SEMICONDUCTOR

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ELMOS SEMICONDUCTOR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ELMOS SEMICONDUCTOR is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Microbot Medical

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Microbot Medical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with ELMOS SEMICONDUCTOR and Microbot Medical

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

The idea behind ELMOS SEMICONDUCTOR and Microbot Medical 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.