Correlation Between Intuitive Surgical and ICICI

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

By analyzing existing cross correlation between Intuitive Surgical and ICICI 4 18 MAR 26, you can compare the effects of market volatilities on Intuitive Surgical and ICICI 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 ICICI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and ICICI.

Diversification Opportunities for Intuitive Surgical and ICICI

-0.45

Correlation Coefficient

Intuitive Surgical  ICICI

Very good diversification

The 3 months correlation between Intuitive and ICICI is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and ICICI 4 18 MAR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI 4 18 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 ICICI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI 4 18 has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and ICICI go up and down completely randomly.

Pair Corralation between Intuitive Surgical and ICICI

Given the investment horizon of 90 days Intuitive Surgical is expected to generate 2.27 times more return on investment than ICICI. However, Intuitive Surgical is 2.27 times more volatile than ICICI 4 18 MAR 26. It trades about 0.1 of its potential returns per unit of risk. ICICI 4 18 MAR 26 is currently generating about 0.09 per unit of risk. If you would invest  25,677  in Intuitive Surgical on October 11, 2024 and sell it today you would earn a total of  28,725  from holding Intuitive Surgical or generate 111.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	9.09%
Values	Daily Returns

Intuitive Surgical  vs.  ICICI 4 18 MAR 26

Intuitive Surgical

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Surgical are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Intuitive Surgical reported solid returns over the last few months and may actually be approaching a breakup point.

ICICI 4 18

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ICICI 4 18 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ICICI is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intuitive Surgical and ICICI

The main advantage of trading using opposite Intuitive Surgical and ICICI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, ICICI 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 ICICI will offset losses from the drop in ICICI's long position.

The idea behind Intuitive Surgical and ICICI 4 18 MAR 26 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 Global Correlations module to find global opportunities by holding instruments from different markets.