Correlation Between Microbot Medical and InMode
Can any of the company-specific risk be diversified away by investing in both Microbot Medical and InMode 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 InMode into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microbot Medical and InMode, you can compare the effects of market volatilities on Microbot Medical and InMode 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 InMode. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microbot Medical and InMode.
Diversification Opportunities for Microbot Medical and InMode
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microbot and InMode is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Microbot Medical and InMode in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMode 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 InMode. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMode has no effect on the direction of Microbot Medical i.e., Microbot Medical and InMode go up and down completely randomly.
Pair Corralation between Microbot Medical and InMode
Given the investment horizon of 90 days Microbot Medical is expected to generate 2.52 times less return on investment than InMode. In addition to that, Microbot Medical is 1.53 times more volatile than InMode. It trades about 0.03 of its total potential returns per unit of risk. InMode is currently generating about 0.11 per unit of volatility. If you would invest 1,456 in InMode on April 9, 2025 and sell it today you would earn a total of 54.00 from holding InMode or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microbot Medical vs. InMode
Performance |
| Timeline |
| Microbot Medical |
| InMode |
Microbot Medical and InMode Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microbot Medical and InMode
The main advantage of trading using opposite Microbot Medical and InMode positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microbot Medical position performs unexpectedly, InMode 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 InMode will offset losses from the drop in InMode's long position.| Microbot Medical vs. Ternium SA ADR | Microbot Medical vs. POSCO Holdings | Microbot Medical vs. NiSource | Microbot Medical vs. CMS Energy |
| InMode vs. Braemar Hotels Resorts | InMode vs. Yum Brands | InMode vs. Biglari Holdings | InMode vs. The Cheesecake Factory |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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