Correlation Between Tevano Systems and Microbot Medical

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

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

Diversification Opportunities for Tevano Systems and Microbot Medical

-0.29

Correlation Coefficient

Tevano Systems  Microbot Medical

Very good diversification

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

Pair Corralation between Tevano Systems and Microbot Medical

Assuming the 90 days horizon Tevano Systems Holdings is expected to under-perform the Microbot Medical. In addition to that, Tevano Systems is 4.27 times more volatile than Microbot Medical. It trades about -0.13 of its total potential returns per unit of risk. Microbot Medical is currently generating about 0.07 per unit of volatility. If you would invest  87.00  in Microbot Medical on August 31, 2024 and sell it today you would earn a total of  10.00  from holding Microbot Medical or generate 11.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Tevano Systems Holdings  vs.  Microbot Medical

Tevano Systems Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tevano Systems Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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

Pair Trading with Tevano Systems and Microbot Medical

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

The idea behind Tevano Systems Holdings and Microbot Medical 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.