Correlation Between Microbot Medical and Coor Service

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

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

Diversification Opportunities for Microbot Medical and Coor Service

0.09

Correlation Coefficient

Microbot Medical  Coor Service

Significant diversification

The 3 months correlation between Microbot and Coor is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management 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 Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of Microbot Medical i.e., Microbot Medical and Coor Service go up and down completely randomly.

Pair Corralation between Microbot Medical and Coor Service

Assuming the 90 days trading horizon Microbot Medical is expected to generate 6.2 times less return on investment than Coor Service. In addition to that, Microbot Medical is 1.56 times more volatile than Coor Service Management. It trades about 0.02 of its total potential returns per unit of risk. Coor Service Management is currently generating about 0.16 per unit of volatility. If you would invest  343.00  in Coor Service Management on April 25, 2025 and sell it today you would earn a total of  74.00  from holding Coor Service Management or generate 21.57% return on investment over 90 days.

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

Microbot Medical  vs.  Coor Service Management

Microbot Medical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Microbot Medical is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Coor Service Management

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coor Service Management are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Coor Service reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Microbot Medical and Coor Service

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

The idea behind Microbot Medical and Coor Service Management 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 Transaction History module to view history of all your transactions and understand their impact on performance.