Correlation Between Prelude Therapeutics and Microbot Medical

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

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

Diversification Opportunities for Prelude Therapeutics and Microbot Medical

-0.45

Correlation Coefficient

Prelude Therapeutics  Microbot Medical

Very good diversification

The 3 months correlation between Prelude and Microbot is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Prelude Therapeutics and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Prelude Therapeutics 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 Prelude Therapeutics 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 Prelude Therapeutics i.e., Prelude Therapeutics and Microbot Medical go up and down completely randomly.

Pair Corralation between Prelude Therapeutics and Microbot Medical

Given the investment horizon of 90 days Prelude Therapeutics is expected to generate 3.8 times more return on investment than Microbot Medical. However, Prelude Therapeutics is 3.8 times more volatile than Microbot Medical. It trades about 0.09 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.21 per unit of risk. If you would invest  127.00  in Prelude Therapeutics on August 24, 2025 and sell it today you would earn a total of  40.00  from holding Prelude Therapeutics or generate 31.5% return on investment over 90 days.

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

Prelude Therapeutics  vs.  Microbot Medical

Prelude Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Prelude Therapeutics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, Prelude Therapeutics exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 inconsistent 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 Prelude Therapeutics and Microbot Medical

The main advantage of trading using opposite Prelude Therapeutics and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prelude Therapeutics 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 Prelude Therapeutics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.