Correlation Between Microbot Medical and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and BJs Restaurants 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 BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and BJs Restaurants, you can compare the effects of market volatilities on Microbot Medical and BJs Restaurants 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 BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and BJs Restaurants.
Diversification Opportunities for Microbot Medical and BJs Restaurants
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Microbot and BJs is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants 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 BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of Microbot Medical i.e., Microbot Medical and BJs Restaurants go up and down completely randomly.
Pair Corralation between Microbot Medical and BJs Restaurants
Given the investment horizon of 90 days Microbot Medical is expected to generate 1.03 times more return on investment than BJs Restaurants. However, Microbot Medical is 1.03 times more volatile than BJs Restaurants. It trades about 0.09 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.06 per unit of risk. If you would invest 85.00 in Microbot Medical on September 23, 2024 and sell it today you would earn a total of 12.00 from holding Microbot Medical or generate 14.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Microbot Medical vs. BJs Restaurants
Performance |
Timeline |
Microbot Medical |
BJs Restaurants |
Microbot Medical and BJs Restaurants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Microbot Medical and BJs Restaurants
The main advantage of trading using opposite Microbot Medical and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.Microbot Medical vs. Cigna Corp | Microbot Medical vs. Definitive Healthcare Corp | Microbot Medical vs. Guardant Health | Microbot Medical vs. Laboratory of |
BJs Restaurants vs. Dine Brands Global | BJs Restaurants vs. Brinker International | BJs Restaurants vs. Bloomin Brands | BJs Restaurants vs. The Cheesecake Factory |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |