Correlation Between Microbot Medical and Meiwu Technology

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

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

Diversification Opportunities for Microbot Medical and Meiwu Technology

0.34

Correlation Coefficient

Microbot Medical  Meiwu Technology

Weak diversification

The 3 months correlation between Microbot and Meiwu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Microbot Medical i.e., Microbot Medical and Meiwu Technology go up and down completely randomly.

Pair Corralation between Microbot Medical and Meiwu Technology

Given the investment horizon of 90 days Microbot Medical is expected to generate 2.09 times less return on investment than Meiwu Technology. In addition to that, Microbot Medical is 1.11 times more volatile than Meiwu Technology Co. It trades about 0.01 of its total potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.01 per unit of volatility. If you would invest  669.00  in Meiwu Technology Co on September 20, 2024 and sell it today you would lose (488.00) from holding Meiwu Technology Co or give up 72.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Microbot Medical  vs.  Meiwu Technology Co

Microbot Medical

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 5 (%) 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.

Meiwu Technology

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Meiwu Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Microbot Medical and Meiwu Technology

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

The idea behind Microbot Medical and Meiwu Technology Co 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.