Correlation Between Capricor Therapeutics and Microbot Medical

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

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

Diversification Opportunities for Capricor Therapeutics and Microbot Medical

-0.06

Correlation Coefficient

Capricor Therapeutics  Microbot Medical

Good diversification

The 3 months correlation between Capricor and Microbot is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Capricor Therapeutics 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 Capricor Therapeutics 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 Capricor Therapeutics i.e., Capricor Therapeutics and Microbot Medical go up and down completely randomly.

Pair Corralation between Capricor Therapeutics and Microbot Medical

Given the investment horizon of 90 days Capricor Therapeutics is expected to under-perform the Microbot Medical. In addition to that, Capricor Therapeutics is 2.55 times more volatile than Microbot Medical. It trades about -0.05 of its total potential returns per unit of risk. Microbot Medical is currently generating about 0.05 per unit of volatility. If you would invest  261.00  in Microbot Medical on April 25, 2025 and sell it today you would earn a total of  23.00  from holding Microbot Medical or generate 8.81% return on investment over 90 days.

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

Capricor Therapeutics  vs.  Microbot Medical

Capricor Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Capricor Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Microbot Medical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Capricor Therapeutics and Microbot Medical

The main advantage of trading using opposite Capricor Therapeutics and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics 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 Capricor Therapeutics 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.