Correlation Between Microbot Medical and Masimo

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

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

Diversification Opportunities for Microbot Medical and Masimo

-0.35

Correlation Coefficient

Microbot Medical  Masimo

Very good diversification

The 3 months correlation between Microbot and Masimo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Masimo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masimo 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 Masimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masimo has no effect on the direction of Microbot Medical i.e., Microbot Medical and Masimo go up and down completely randomly.

Pair Corralation between Microbot Medical and Masimo

Given the investment horizon of 90 days Microbot Medical is expected to generate 1.75 times more return on investment than Masimo. However, Microbot Medical is 1.75 times more volatile than Masimo. It trades about 0.08 of its potential returns per unit of risk. Masimo is currently generating about 0.0 per unit of risk. If you would invest  246.00  in Microbot Medical on May 14, 2025 and sell it today you would earn a total of  43.00  from holding Microbot Medical or generate 17.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Microbot Medical  vs.  Masimo

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.

Masimo

Risk-Adjusted Performance

Weakest

Over the last 90 days Masimo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Masimo 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 Masimo

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

The idea behind Microbot Medical and Masimo 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.