Correlation Between Microbot Medical and ICU Medical

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

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

Diversification Opportunities for Microbot Medical and ICU Medical

0.14

Correlation Coefficient

Microbot Medical  ICU Medical

Average diversification

The 3 months correlation between Microbot and ICU is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical 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 ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Microbot Medical i.e., Microbot Medical and ICU Medical go up and down completely randomly.

Pair Corralation between Microbot Medical and ICU Medical

Given the investment horizon of 90 days Microbot Medical is expected to generate 1.73 times more return on investment than ICU Medical. However, Microbot Medical is 1.73 times more volatile than ICU Medical. It trades about 0.03 of its potential returns per unit of risk. ICU Medical is currently generating about -0.03 per unit of risk. If you would invest  269.00  in Microbot Medical on April 26, 2025 and sell it today you would earn a total of  5.00  from holding Microbot Medical or generate 1.86% 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.  ICU Medical

Microbot Medical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 2 (%) 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 August 2025.

ICU Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days ICU Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, ICU Medical is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Microbot Medical and ICU Medical

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

The idea behind Microbot Medical and ICU 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.