Correlation Between MacroGenics and Microbot Medical

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

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

Diversification Opportunities for MacroGenics and Microbot Medical

0.5

Correlation Coefficient

MacroGenics  Microbot Medical

Very weak diversification

The 3 months correlation between MacroGenics and Microbot is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding MacroGenics and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and MacroGenics 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 MacroGenics are associated (or correlated) with Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of MacroGenics i.e., MacroGenics and Microbot Medical go up and down completely randomly.

Pair Corralation between MacroGenics and Microbot Medical

Given the investment horizon of 90 days MacroGenics is expected to generate 0.92 times more return on investment than Microbot Medical. However, MacroGenics is 1.08 times less risky than Microbot Medical. It trades about -0.02 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.18 per unit of risk. If you would invest  170.00  in MacroGenics on August 28, 2025 and sell it today you would lose (25.00) from holding MacroGenics or give up 14.71% of portfolio value over 90 days.

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

MacroGenics  vs.  Microbot Medical

MacroGenics

Risk-Adjusted Performance

Weakest

Over the last 90 days MacroGenics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Microbot Medical

Risk-Adjusted Performance

Weakest

Over the last 90 days Microbot Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with MacroGenics and Microbot Medical

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

The idea behind MacroGenics and Microbot 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.