Correlation Between Microbot Medical and 908 Devices

Can any of the company-specific risk be diversified away by investing in both Microbot Medical and 908 Devices 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 908 Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Microbot Medical and 908 Devices, you can compare the effects of market volatilities on Microbot Medical and 908 Devices 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 908 Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and 908 Devices.

Diversification Opportunities for Microbot Medical and 908 Devices

-0.19

Correlation Coefficient

Microbot Medical  908 Devices

Good diversification

The 3 months correlation between Microbot and 908 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and 908 Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 908 Devices 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 908 Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 908 Devices has no effect on the direction of Microbot Medical i.e., Microbot Medical and 908 Devices go up and down completely randomly.

Pair Corralation between Microbot Medical and 908 Devices

Given the investment horizon of 90 days Microbot Medical is expected to generate 1.2 times more return on investment than 908 Devices. However, Microbot Medical is 1.2 times more volatile than 908 Devices. It trades about 0.3 of its potential returns per unit of risk. 908 Devices is currently generating about -0.03 per unit of risk. If you would invest  250.00  in Microbot Medical on May 28, 2025 and sell it today you would earn a total of  166.00  from holding Microbot Medical or generate 66.4% 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.  908 Devices

Microbot Medical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 12 (%) 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.

908 Devices

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in 908 Devices are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, 908 Devices may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Microbot Medical and 908 Devices

The main advantage of trading using opposite Microbot Medical and 908 Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, 908 Devices 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 908 Devices will offset losses from the drop in 908 Devices' long position.

The idea behind Microbot Medical and 908 Devices 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.