Correlation Between Where Food and Microbot Medical

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

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

Diversification Opportunities for Where Food and Microbot Medical

0.5

Correlation Coefficient

Where Food  Microbot Medical

Very weak diversification

The 3 months correlation between Where and Microbot is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Where Food 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 Where Food Comes 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 Where Food i.e., Where Food and Microbot Medical go up and down completely randomly.

Pair Corralation between Where Food and Microbot Medical

Given the investment horizon of 90 days Where Food Comes is expected to generate 0.68 times more return on investment than Microbot Medical. However, Where Food Comes is 1.48 times less risky than Microbot Medical. It trades about 0.1 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.02 per unit of risk. If you would invest  1,097  in Where Food Comes on September 13, 2024 and sell it today you would earn a total of  133.00  from holding Where Food Comes or generate 12.12% return on investment over 90 days.

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

Where Food Comes  vs.  Microbot Medical

Where Food Comes

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental indicators, Where Food may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Microbot Medical

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Microbot Medical is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Where Food and Microbot Medical

The main advantage of trading using opposite Where Food and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food 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 Where Food Comes 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.