Correlation Between Microbot Medical and Cooper Companies,

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

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

Diversification Opportunities for Microbot Medical and Cooper Companies,

-0.27

Correlation Coefficient

Microbot Medical  Cooper Companies,

Very good diversification

The 3 months correlation between Microbot and Cooper is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and The Cooper Companies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Companies, 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 Cooper Companies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Companies, has no effect on the direction of Microbot Medical i.e., Microbot Medical and Cooper Companies, go up and down completely randomly.

Pair Corralation between Microbot Medical and Cooper Companies,

Given the investment horizon of 90 days Microbot Medical is expected to generate 3.2 times more return on investment than Cooper Companies,. However, Microbot Medical is 3.2 times more volatile than The Cooper Companies,. It trades about 0.09 of its potential returns per unit of risk. The Cooper Companies, is currently generating about -0.02 per unit of risk. If you would invest  87.00  in Microbot Medical on September 3, 2024 and sell it today you would earn a total of  13.00  from holding Microbot Medical or generate 14.94% 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.  The Cooper Companies,

Microbot Medical

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 6 (%) 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.

Cooper Companies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Cooper Companies, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cooper Companies, is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Microbot Medical and Cooper Companies,

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

The idea behind Microbot Medical and The Cooper Companies, 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.