Correlation Between Microbot Medical and BrightSpring Health

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

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

Diversification Opportunities for Microbot Medical and BrightSpring Health

-0.07

Correlation Coefficient

Microbot Medical  BrightSpring Health

Good diversification

The 3 months correlation between Microbot and BrightSpring is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and BrightSpring Health Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightSpring Health 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 BrightSpring Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightSpring Health has no effect on the direction of Microbot Medical i.e., Microbot Medical and BrightSpring Health go up and down completely randomly.

Pair Corralation between Microbot Medical and BrightSpring Health

Given the investment horizon of 90 days Microbot Medical is expected to generate 1.76 times more return on investment than BrightSpring Health. However, Microbot Medical is 1.76 times more volatile than BrightSpring Health Services,. It trades about 0.08 of its potential returns per unit of risk. BrightSpring Health Services, is currently generating about -0.06 per unit of risk. If you would invest  267.00  in Microbot Medical on May 15, 2025 and sell it today you would earn a total of  45.00  from holding Microbot Medical or generate 16.85% 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.  BrightSpring Health Services,

Microbot Medical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 6 (%) 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.

BrightSpring Health

Risk-Adjusted Performance

Weakest

Over the last 90 days BrightSpring Health Services, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Microbot Medical and BrightSpring Health

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

The idea behind Microbot Medical and BrightSpring Health Services, 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.