Correlation Between Microbot Medical and G III

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

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

Diversification Opportunities for Microbot Medical and G III

0.61

Correlation Coefficient

Microbot Medical  G III

Poor diversification

The 3 months correlation between Microbot and GI4 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Microbot Medical i.e., Microbot Medical and G III go up and down completely randomly.

Pair Corralation between Microbot Medical and G III

Assuming the 90 days trading horizon Microbot Medical is expected to generate 1.19 times more return on investment than G III. However, Microbot Medical is 1.19 times more volatile than G III Apparel Group. It trades about 0.09 of its potential returns per unit of risk. G III Apparel Group is currently generating about -0.02 per unit of risk. If you would invest  179.00  in Microbot Medical on April 22, 2025 and sell it today you would earn a total of  33.00  from holding Microbot Medical or generate 18.44% return on investment over 90 days.

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

Microbot Medical  vs.  G III Apparel Group

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 uncertain basic indicators, Microbot Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

G III Apparel

Risk-Adjusted Performance

Very Weak

Over the last 90 days G III Apparel Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, G III is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Microbot Medical and G III

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

The idea behind Microbot Medical and G III Apparel Group 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.