Correlation Between 632525AW1 and Microbot Medical

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

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

Diversification Opportunities for 632525AW1 and Microbot Medical

0.29

Correlation Coefficient

632525AW1  Microbot Medical

Modest diversification

The 3 months correlation between 632525AW1 and Microbot is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding NAB 2648 14 JAN 41 and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and 632525AW1 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 NAB 2648 14 JAN 41 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 632525AW1 i.e., 632525AW1 and Microbot Medical go up and down completely randomly.

Pair Corralation between 632525AW1 and Microbot Medical

Assuming the 90 days trading horizon NAB 2648 14 JAN 41 is expected to under-perform the Microbot Medical. But the bond apears to be less risky and, when comparing its historical volatility, NAB 2648 14 JAN 41 is 1.46 times less risky than Microbot Medical. The bond trades about -0.22 of its potential returns per unit of risk. The Microbot Medical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  85.00  in Microbot Medical on September 22, 2024 and sell it today you would earn a total of  12.00  from holding Microbot Medical or generate 14.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	43.75%
Values	Daily Returns

NAB 2648 14 JAN 41  vs.  Microbot Medical

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 conflicting 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.

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

Pair Trading with 632525AW1 and Microbot Medical

The main advantage of trading using opposite 632525AW1 and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 632525AW1 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 NAB 2648 14 JAN 41 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.