Correlation Between Microbot Medical and AFFLUENT MEDICAL

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

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

Diversification Opportunities for Microbot Medical and AFFLUENT MEDICAL

0.34

Correlation Coefficient

Microbot Medical  AFFLUENT MEDICAL

Weak diversification

The 3 months correlation between Microbot and AFFLUENT is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and AFFLUENT MEDICAL SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFFLUENT MEDICAL SAS 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 AFFLUENT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFFLUENT MEDICAL SAS has no effect on the direction of Microbot Medical i.e., Microbot Medical and AFFLUENT MEDICAL go up and down completely randomly.

Pair Corralation between Microbot Medical and AFFLUENT MEDICAL

Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.53 times more return on investment than AFFLUENT MEDICAL. However, Microbot Medical is 1.53 times more volatile than AFFLUENT MEDICAL SAS. It trades about 0.07 of its potential returns per unit of risk. AFFLUENT MEDICAL SAS is currently generating about -0.03 per unit of risk. 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

Microbot Medical  vs.  AFFLUENT MEDICAL SAS

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.

AFFLUENT MEDICAL SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days AFFLUENT MEDICAL SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AFFLUENT MEDICAL is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Microbot Medical and AFFLUENT MEDICAL

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

The idea behind Microbot Medical and AFFLUENT MEDICAL SAS 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.