Correlation Between Microbot Medical and Hologic

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

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

Diversification Opportunities for Microbot Medical and Hologic

0.12

Correlation Coefficient

Microbot Medical  Hologic

Average diversification

The 3 months correlation between Microbot and Hologic is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic 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 Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of Microbot Medical i.e., Microbot Medical and Hologic go up and down completely randomly.

Pair Corralation between Microbot Medical and Hologic

Given the investment horizon of 90 days Microbot Medical is expected to generate 2.08 times less return on investment than Hologic. In addition to that, Microbot Medical is 1.79 times more volatile than Hologic. It trades about 0.04 of its total potential returns per unit of risk. Hologic is currently generating about 0.16 per unit of volatility. If you would invest  5,543  in Hologic on May 7, 2025 and sell it today you would earn a total of  1,248  from holding Hologic or generate 22.51% return on investment over 90 days.

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

Microbot Medical  vs.  Hologic

Microbot Medical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Microbot Medical may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Hologic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hologic are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady essential indicators, Hologic showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Microbot Medical and Hologic

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

The idea behind Microbot Medical and Hologic 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.