Correlation Between Microbot Medical and EQV Ventures

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

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

Diversification Opportunities for Microbot Medical and EQV Ventures

-0.14

Correlation Coefficient

Microbot Medical  EQV Ventures

Good diversification

The 3 months correlation between Microbot and EQV is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and EQV Ventures Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQV Ventures Acquisition 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 EQV Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQV Ventures Acquisition has no effect on the direction of Microbot Medical i.e., Microbot Medical and EQV Ventures go up and down completely randomly.

Pair Corralation between Microbot Medical and EQV Ventures

Given the investment horizon of 90 days Microbot Medical is expected to generate 31.52 times more return on investment than EQV Ventures. However, Microbot Medical is 31.52 times more volatile than EQV Ventures Acquisition. It trades about 0.09 of its potential returns per unit of risk. EQV Ventures Acquisition is currently generating about 0.04 per unit of risk. If you would invest  88.00  in Microbot Medical on September 19, 2024 and sell it today you would earn a total of  12.00  from holding Microbot Medical or generate 13.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Microbot Medical  vs.  EQV Ventures Acquisition

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 conflicting basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

EQV Ventures Acquisition

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EQV Ventures Acquisition are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, EQV Ventures is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Microbot Medical and EQV Ventures

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

The idea behind Microbot Medical and EQV Ventures Acquisition 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.