Correlation Between ANDRADA MINING and Microbot Medical

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

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

Diversification Opportunities for ANDRADA MINING and Microbot Medical

0.28

Correlation Coefficient

ANDRADA MINING  Microbot Medical

Modest diversification

The 3 months correlation between ANDRADA and Microbot is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANDRADA MINING LTD and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and ANDRADA MINING 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 ANDRADA MINING LTD 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 ANDRADA MINING i.e., ANDRADA MINING and Microbot Medical go up and down completely randomly.

Pair Corralation between ANDRADA MINING and Microbot Medical

Assuming the 90 days horizon ANDRADA MINING is expected to generate 3.23 times less return on investment than Microbot Medical. But when comparing it to its historical volatility, ANDRADA MINING LTD is 1.09 times less risky than Microbot Medical. It trades about 0.03 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  181.00  in Microbot Medical on April 23, 2025 and sell it today you would earn a total of  26.00  from holding Microbot Medical or generate 14.36% return on investment over 90 days.

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

ANDRADA MINING LTD  vs.  Microbot Medical

ANDRADA MINING LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANDRADA MINING LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ANDRADA MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Microbot Medical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANDRADA MINING and Microbot Medical

The main advantage of trading using opposite ANDRADA MINING and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANDRADA MINING 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 ANDRADA MINING LTD 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.