Correlation Between Repligen and Microbot Medical

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

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

Diversification Opportunities for Repligen and Microbot Medical

-0.24

Correlation Coefficient

Repligen  Microbot Medical

Very good diversification

The 3 months correlation between Repligen and Microbot is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Repligen 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 Repligen 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 Repligen i.e., Repligen and Microbot Medical go up and down completely randomly.

Pair Corralation between Repligen and Microbot Medical

Given the investment horizon of 90 days Repligen is expected to under-perform the Microbot Medical. But the stock apears to be less risky and, when comparing its historical volatility, Repligen is 1.34 times less risky than Microbot Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Microbot Medical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  247.00  in Microbot Medical on April 30, 2025 and sell it today you would earn a total of  43.00  from holding Microbot Medical or generate 17.41% return on investment over 90 days.

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

Repligen  vs.  Microbot Medical

Repligen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repligen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Microbot Medical

Risk-Adjusted Performance

Modest

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.

Pair Trading with Repligen and Microbot Medical

The main advantage of trading using opposite Repligen and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen 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 Repligen 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.