Correlation Between Microbot Medical and Repligen

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

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

Diversification Opportunities for Microbot Medical and Repligen

-0.09

Correlation Coefficient

Microbot Medical  Repligen

Good diversification

The 3 months correlation between Microbot and Repligen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Microbot Medical i.e., Microbot Medical and Repligen go up and down completely randomly.

Pair Corralation between Microbot Medical and Repligen

Given the investment horizon of 90 days Microbot Medical is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, Microbot Medical is 1.2 times less risky than Repligen. The stock trades about -0.03 of its potential returns per unit of risk. The Repligen is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  15,070  in Repligen on September 3, 2024 and sell it today you would lose (24.00) from holding Repligen or give up 0.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Microbot Medical  vs.  Repligen

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.

Repligen

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Repligen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Microbot Medical and Repligen

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

The idea behind Microbot Medical and Repligen 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.