Correlation Between Microbot Medical and Align Technology

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

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

Diversification Opportunities for Microbot Medical and Align Technology

-0.26

Correlation Coefficient

Microbot Medical  Align Technology

Very good diversification

The 3 months correlation between Microbot and Align is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of Microbot Medical i.e., Microbot Medical and Align Technology go up and down completely randomly.

Pair Corralation between Microbot Medical and Align Technology

Given the investment horizon of 90 days Microbot Medical is expected to generate 0.61 times more return on investment than Align Technology. However, Microbot Medical is 1.63 times less risky than Align Technology. It trades about 0.22 of its potential returns per unit of risk. Align Technology is currently generating about -0.14 per unit of risk. If you would invest  252.00  in Microbot Medical on May 14, 2025 and sell it today you would earn a total of  60.00  from holding Microbot Medical or generate 23.81% return on investment over 90 days.

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

Microbot Medical  vs.  Align Technology

Microbot Medical

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 8 (%) 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.

Align Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Align Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Microbot Medical and Align Technology

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

The idea behind Microbot Medical and Align Technology 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.