Correlation Between Microbot Medical and Banco Ita

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

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

Diversification Opportunities for Microbot Medical and Banco Ita

0.41

Correlation Coefficient

Microbot Medical  Banco Ita

Very weak diversification

The 3 months correlation between Microbot and Banco is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Banco Ita Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Ita Chile 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 Banco Ita. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Ita Chile has no effect on the direction of Microbot Medical i.e., Microbot Medical and Banco Ita go up and down completely randomly.

Pair Corralation between Microbot Medical and Banco Ita

If you would invest  94.00  in Microbot Medical on September 17, 2024 and sell it today you would earn a total of  6.00  from holding Microbot Medical or generate 6.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.54%
Values	Daily Returns

Microbot Medical  vs.  Banco Ita Chile

Microbot Medical

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 3 (%) 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.

Banco Ita Chile

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Banco Ita Chile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Banco Ita is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Microbot Medical and Banco Ita

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

The idea behind Microbot Medical and Banco Ita Chile 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.