Correlation Between ARDAGH METAL and INTUITIVE SURGICAL

Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and INTUITIVE SURGICAL 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 ARDAGH METAL and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and INTUITIVE SURGICAL, you can compare the effects of market volatilities on ARDAGH METAL and INTUITIVE SURGICAL 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 ARDAGH METAL with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and INTUITIVE SURGICAL.

Diversification Opportunities for ARDAGH METAL and INTUITIVE SURGICAL

-0.43

Correlation Coefficient

ARDAGH METAL  INTUITIVE SURGICAL

Very good diversification

The 3 months correlation between ARDAGH and INTUITIVE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and ARDAGH METAL 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 ARDAGH METAL PACDL 0001 are associated (or correlated) with INTUITIVE SURGICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTUITIVE SURGICAL has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between ARDAGH METAL and INTUITIVE SURGICAL

Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to generate 1.85 times more return on investment than INTUITIVE SURGICAL. However, ARDAGH METAL is 1.85 times more volatile than INTUITIVE SURGICAL. It trades about 0.01 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about -0.08 per unit of risk. If you would invest  274.00  in ARDAGH METAL PACDL 0001 on December 24, 2024 and sell it today you would lose (6.00) from holding ARDAGH METAL PACDL 0001 or give up 2.19% of portfolio value over 90 days.

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

ARDAGH METAL PACDL 0001  vs.  INTUITIVE SURGICAL

ARDAGH METAL PACDL

Risk-Adjusted Performance

Very Weak

Over the last 90 days ARDAGH METAL PACDL 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ARDAGH METAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

INTUITIVE SURGICAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTUITIVE SURGICAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with ARDAGH METAL and INTUITIVE SURGICAL

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

The idea behind ARDAGH METAL PACDL 0001 and INTUITIVE SURGICAL 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.