Correlation Between Intuitive Surgical and Lake Resources
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Lake Resources 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 Intuitive Surgical and Lake Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Lake Resources NL, you can compare the effects of market volatilities on Intuitive Surgical and Lake Resources 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 Intuitive Surgical with a short position of Lake Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Lake Resources.
Diversification Opportunities for Intuitive Surgical and Lake Resources
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and Lake is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Lake Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Resources NL and Intuitive Surgical 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 Intuitive Surgical are associated (or correlated) with Lake Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Resources NL has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Lake Resources go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Lake Resources
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 0.24 times more return on investment than Lake Resources. However, Intuitive Surgical is 4.09 times less risky than Lake Resources. It trades about 0.2 of its potential returns per unit of risk. Lake Resources NL is currently generating about -0.12 per unit of risk. If you would invest 51,127 in Intuitive Surgical on October 25, 2024 and sell it today you would earn a total of 9,918 from holding Intuitive Surgical or generate 19.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intuitive Surgical vs. Lake Resources NL
Performance |
Timeline |
Intuitive Surgical |
Lake Resources NL |
Intuitive Surgical and Lake Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intuitive Surgical and Lake Resources
The main advantage of trading using opposite Intuitive Surgical and Lake Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Lake Resources 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 Lake Resources will offset losses from the drop in Lake Resources' long position.Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
Lake Resources vs. TFI International | Lake Resources vs. Proficient Auto Logistics, | Lake Resources vs. Cincinnati Financial | Lake Resources vs. Sunlands Technology Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |