Correlation Between EvoAir Holdings and Microbot Medical

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

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

Diversification Opportunities for EvoAir Holdings and Microbot Medical

0.0

Correlation Coefficient

EvoAir Holdings  Microbot Medical

Pay attention - limited upside

The 3 months correlation between EvoAir and Microbot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EvoAir Holdings and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings i.e., EvoAir Holdings and Microbot Medical go up and down completely randomly.

Pair Corralation between EvoAir Holdings and Microbot Medical

If you would invest  88.00  in Microbot Medical on September 20, 2024 and sell it today you would earn a total of  9.00  from holding Microbot Medical or generate 10.23% return on investment over 90 days.

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

EvoAir Holdings  vs.  Microbot Medical

EvoAir Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EvoAir Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, EvoAir Holdings 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

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Microbot Medical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with EvoAir Holdings and Microbot Medical

The main advantage of trading using opposite EvoAir Holdings and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EvoAir Holdings 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 EvoAir Holdings 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.