Correlation Between Capricor Therapeutics and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Capricor Therapeutics 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 Capricor Therapeutics and Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricor Therapeutics and Microbot Medical, you can compare the effects of market volatilities on Capricor Therapeutics 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 Capricor Therapeutics with a short position of Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricor Therapeutics and Microbot Medical.
Diversification Opportunities for Capricor Therapeutics and Microbot Medical
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capricor and Microbot is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical and Capricor Therapeutics 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 Capricor Therapeutics 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 Capricor Therapeutics i.e., Capricor Therapeutics and Microbot Medical go up and down completely randomly.
Pair Corralation between Capricor Therapeutics and Microbot Medical
Given the investment horizon of 90 days Capricor Therapeutics is expected to under-perform the Microbot Medical. In addition to that, Capricor Therapeutics is 2.0 times more volatile than Microbot Medical. It trades about -0.03 of its total potential returns per unit of risk. Microbot Medical is currently generating about 0.19 per unit of volatility. If you would invest 254.00 in Microbot Medical on May 30, 2025 and sell it today you would earn a total of 153.00 from holding Microbot Medical or generate 60.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capricor Therapeutics vs. Microbot Medical
Performance |
| Timeline |
| Capricor Therapeutics |
| Microbot Medical |
Capricor Therapeutics and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricor Therapeutics and Microbot Medical
The main advantage of trading using opposite Capricor Therapeutics and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics 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.| Capricor Therapeutics vs. Pulmatrix | Capricor Therapeutics vs. CervoMed | Capricor Therapeutics vs. Crinetics Pharmaceuticals | Capricor Therapeutics vs. Moleculin Biotech |
| Microbot Medical vs. Repro Med Systems | Microbot Medical vs. InfuSystems Holdings | Microbot Medical vs. Milestone Scientific | Microbot Medical vs. Sysmex Corp |
Check out your portfolio center.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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