Correlation Between Microbot Medical and Jutal Offshore

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and Jutal Offshore 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 Jutal Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and Jutal Offshore Oil, you can compare the effects of market volatilities on Microbot Medical and Jutal Offshore 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 Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and Jutal Offshore.

Diversification Opportunities for Microbot Medical and Jutal Offshore

MicrobotJutalDiversified AwayMicrobotJutalDiversified Away100%
0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between Microbot and Jutal is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil 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 Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Microbot Medical i.e., Microbot Medical and Jutal Offshore go up and down completely randomly.

Pair Corralation between Microbot Medical and Jutal Offshore

Given the investment horizon of 90 days Microbot Medical is expected to generate 2.68 times more return on investment than Jutal Offshore. However, Microbot Medical is 2.68 times more volatile than Jutal Offshore Oil. It trades about 0.13 of its potential returns per unit of risk. Jutal Offshore Oil is currently generating about 0.12 per unit of risk. If you would invest  89.00  in Microbot Medical on September 29, 2024 and sell it today you would earn a total of  22.00  from holding Microbot Medical or generate 24.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy96.92%
ValuesDaily Returns

Microbot Medical  vs.  Jutal Offshore Oil

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 051015
JavaScript chart by amCharts 3.21.15MBOT JUTOY
       Timeline  
Microbot Medical 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecDec0.90.9511.051.1
Jutal Offshore Oil 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Jutal Offshore Oil are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Jutal Offshore may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15NovDecDec1919.52020.521

Microbot Medical and Jutal Offshore Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.29-6.96-4.63-2.290.03892.424.937.439.9312.44 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15MBOT JUTOY
       Returns  

Pair Trading with Microbot Medical and Jutal Offshore

The main advantage of trading using opposite Microbot Medical and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore's long position.
The idea behind Microbot Medical and Jutal Offshore Oil 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.
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Equity Valuation
Check real value of public entities based on technical and fundamental data
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets