Correlation Between Microbot Medical and 632525AW1

Can any of the company-specific risk be diversified away by investing in both Microbot Medical and 632525AW1 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 632525AW1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Microbot Medical and NAB 2648 14 JAN 41, you can compare the effects of market volatilities on Microbot Medical and 632525AW1 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 632525AW1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and 632525AW1.

Diversification Opportunities for Microbot Medical and 632525AW1

0.29

Correlation Coefficient

Microbot Medical  632525AW1

Modest diversification

The 3 months correlation between Microbot and 632525AW1 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and NAB 2648 14 JAN 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAB 2648 14 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 632525AW1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAB 2648 14 has no effect on the direction of Microbot Medical i.e., Microbot Medical and 632525AW1 go up and down completely randomly.

Pair Corralation between Microbot Medical and 632525AW1

Given the investment horizon of 90 days Microbot Medical is expected to generate 1.45 times more return on investment than 632525AW1. However, Microbot Medical is 1.45 times more volatile than NAB 2648 14 JAN 41. It trades about 0.08 of its potential returns per unit of risk. NAB 2648 14 JAN 41 is currently generating about -0.22 per unit of risk. If you would invest  86.00  in Microbot Medical on September 24, 2024 and sell it today you would earn a total of  11.00  from holding Microbot Medical or generate 12.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	43.08%
Values	Daily Returns

Microbot Medical  vs.  NAB 2648 14 JAN 41

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

NAB 2648 14

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAB 2648 14 JAN 41 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for NAB 2648 14 JAN 41 investors.

Pair Trading with Microbot Medical and 632525AW1

The main advantage of trading using opposite Microbot Medical and 632525AW1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, 632525AW1 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 632525AW1 will offset losses from the drop in 632525AW1's long position.

The idea behind Microbot Medical and NAB 2648 14 JAN 41 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.