Correlation Between DAX Index and Intuitive Surgical
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By analyzing existing cross correlation between DAX Index and Intuitive Surgical, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Intuitive Surgical.
Diversification Opportunities for DAX Index and Intuitive Surgical
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Intuitive is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Intuitive Surgical go up and down completely randomly.
Pair Corralation between DAX Index and Intuitive Surgical
Assuming the 90 days trading horizon DAX Index is expected to generate 1.24 times less return on investment than Intuitive Surgical. But when comparing it to its historical volatility, DAX Index is 1.45 times less risky than Intuitive Surgical. It trades about 0.27 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 48,520 in Intuitive Surgical on September 8, 2024 and sell it today you would earn a total of 3,160 from holding Intuitive Surgical or generate 6.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Intuitive Surgical
Performance |
Timeline |
DAX Index and Intuitive Surgical Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Intuitive Surgical
Pair trading matchups for Intuitive Surgical
Pair Trading with DAX Index and Intuitive Surgical
The main advantage of trading using opposite DAX Index and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.DAX Index vs. United Insurance Holdings | DAX Index vs. SBI Insurance Group | DAX Index vs. Safety Insurance Group | DAX Index vs. Ping An Insurance |
Intuitive Surgical vs. FARO Technologies | Intuitive Surgical vs. SOFI TECHNOLOGIES | Intuitive Surgical vs. RCM TECHNOLOGIES | Intuitive Surgical vs. NetSol Technologies |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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