Correlation Between ChemoMetec A/S and INTUITIVE SURGICAL

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

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

Diversification Opportunities for ChemoMetec A/S and INTUITIVE SURGICAL

0.33

Correlation Coefficient

ChemoMetec A/S  INTUITIVE SURGICAL

Weak diversification

The 3 months correlation between ChemoMetec and INTUITIVE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ChemoMetec AS and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and ChemoMetec A/S 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 ChemoMetec AS 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 ChemoMetec A/S i.e., ChemoMetec A/S and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between ChemoMetec A/S and INTUITIVE SURGICAL

Assuming the 90 days horizon ChemoMetec AS is expected to generate 1.17 times more return on investment than INTUITIVE SURGICAL. However, ChemoMetec A/S is 1.17 times more volatile than INTUITIVE SURGICAL. It trades about 0.05 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about -0.08 per unit of risk. If you would invest  6,725  in ChemoMetec AS on December 24, 2024 and sell it today you would earn a total of  415.00  from holding ChemoMetec AS or generate 6.17% return on investment over 90 days.

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

ChemoMetec AS  vs.  INTUITIVE SURGICAL

ChemoMetec A/S

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ChemoMetec AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ChemoMetec A/S may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 ChemoMetec A/S and INTUITIVE SURGICAL

The main advantage of trading using opposite ChemoMetec A/S and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChemoMetec A/S 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 ChemoMetec AS 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.