Correlation Between Jacquet Metal and INTUITIVE SURGICAL

Can any of the company-specific risk be diversified away by investing in both Jacquet 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 Jacquet 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 Jacquet Metal Service and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Jacquet 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 Jacquet Metal with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and INTUITIVE SURGICAL.

Diversification Opportunities for Jacquet Metal and INTUITIVE SURGICAL

-0.12

Correlation Coefficient

Jacquet Metal  INTUITIVE SURGICAL

Good diversification

The 3 months correlation between Jacquet and INTUITIVE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Jacquet 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 Jacquet Metal Service 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 Jacquet Metal i.e., Jacquet Metal and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between Jacquet Metal and INTUITIVE SURGICAL

Assuming the 90 days horizon Jacquet Metal Service is expected to under-perform the INTUITIVE SURGICAL. But the stock apears to be less risky and, when comparing its historical volatility, Jacquet Metal Service is 1.04 times less risky than INTUITIVE SURGICAL. The stock trades about 0.0 of its potential returns per unit of risk. The INTUITIVE SURGICAL is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  23,905  in INTUITIVE SURGICAL on October 25, 2024 and sell it today you would earn a total of  34,855  from holding INTUITIVE SURGICAL or generate 145.81% return on investment over 90 days.

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

Jacquet Metal Service  vs.  INTUITIVE SURGICAL

Jacquet Metal Service

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jacquet Metal Service has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

INTUITIVE SURGICAL

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in INTUITIVE SURGICAL are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, INTUITIVE SURGICAL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jacquet Metal and INTUITIVE SURGICAL

The main advantage of trading using opposite Jacquet Metal and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet 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 Jacquet Metal Service 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.