Correlation Between Microbot Medical and DINE SAB

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

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

Diversification Opportunities for Microbot Medical and DINE SAB

0.0

Correlation Coefficient

Microbot Medical  DINE SAB

Pay attention - limited upside

The 3 months correlation between Microbot and DINE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and DINE SAB De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DINE SAB De 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 DINE SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DINE SAB De has no effect on the direction of Microbot Medical i.e., Microbot Medical and DINE SAB go up and down completely randomly.

Pair Corralation between Microbot Medical and DINE SAB

If you would invest (100.00) in DINE SAB De on February 4, 2024 and sell it today you would earn a total of  100.00  from holding DINE SAB De or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Microbot Medical  vs.  DINE SAB De

Microbot Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Microbot Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

DINE SAB De

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DINE SAB De has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, DINE SAB is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Microbot Medical and DINE SAB

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

The idea behind Microbot Medical and DINE SAB De 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.