Correlation Between Flag Ship and Microbot Medical

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

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

Diversification Opportunities for Flag Ship and Microbot Medical

-0.06

Correlation Coefficient

Flag Ship  Microbot Medical

Good diversification

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

Pair Corralation between Flag Ship and Microbot Medical

Assuming the 90 days horizon Flag Ship Acquisition is expected to generate 3.13 times more return on investment than Microbot Medical. However, Flag Ship is 3.13 times more volatile than Microbot Medical. It trades about 0.06 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.09 per unit of risk. If you would invest  12.00  in Flag Ship Acquisition on May 13, 2025 and sell it today you would earn a total of  0.00  from holding Flag Ship Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	58.73%
Values	Daily Returns

Flag Ship Acquisition  vs.  Microbot Medical

Flag Ship Acquisition

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Flag Ship Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Flag Ship reported solid returns over the last few months and may actually be approaching a breakup point.

Microbot Medical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 7 (%) 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 Flag Ship and Microbot Medical

The main advantage of trading using opposite Flag Ship and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flag Ship 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 Flag Ship Acquisition 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..