Correlation Between Identiv and INTUITIVE SURGICAL

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

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

Diversification Opportunities for Identiv and INTUITIVE SURGICAL

-0.54

Correlation Coefficient

Identiv  INTUITIVE SURGICAL

Excellent diversification

The 3 months correlation between Identiv and INTUITIVE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Identiv 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 Identiv 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 Identiv i.e., Identiv and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between Identiv and INTUITIVE SURGICAL

Assuming the 90 days trading horizon Identiv is expected to under-perform the INTUITIVE SURGICAL. In addition to that, Identiv is 1.87 times more volatile than INTUITIVE SURGICAL. It trades about -0.03 of its total potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.1 per unit of volatility. If you would invest  50,960  in INTUITIVE SURGICAL on November 28, 2024 and sell it today you would earn a total of  5,180  from holding INTUITIVE SURGICAL or generate 10.16% return on investment over 90 days.

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

Identiv  vs.  INTUITIVE SURGICAL

Identiv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Identiv has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INTUITIVE SURGICAL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, INTUITIVE SURGICAL may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Identiv and INTUITIVE SURGICAL

The main advantage of trading using opposite Identiv and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv 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 Identiv 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.