Correlation Between Ramsay Health and Microbot Medical

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

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

Diversification Opportunities for Ramsay Health and Microbot Medical

0.24

Correlation Coefficient

Ramsay Health  Microbot Medical

Modest diversification

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

Pair Corralation between Ramsay Health and Microbot Medical

Assuming the 90 days horizon Ramsay Health Care is expected to generate 0.46 times more return on investment than Microbot Medical. However, Ramsay Health Care is 2.17 times less risky than Microbot Medical. It trades about 0.14 of its potential returns per unit of risk. Microbot Medical is currently generating about 0.03 per unit of risk. If you would invest  1,840  in Ramsay Health Care on April 24, 2025 and sell it today you would earn a total of  260.00  from holding Ramsay Health Care or generate 14.13% return on investment over 90 days.

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

Ramsay Health Care  vs.  Microbot Medical

Ramsay Health Care

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ramsay Health Care are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ramsay Health reported solid returns over the last few months and may actually be approaching a breakup point.

Microbot Medical

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Microbot Medical are ranked lower than 2 (%) 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.

Pair Trading with Ramsay Health and Microbot Medical

The main advantage of trading using opposite Ramsay Health and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health 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 Ramsay Health Care 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.