Correlation Between INTUITIVE SURGICAL and Amundi Label

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Amundi Label

0.12

Correlation Coefficient

INTUITIVE SURGICAL  Amundi Label

Average diversification

The 3 months correlation between INTUITIVE and Amundi is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Amundi Label Equilibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Label Equilibre 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 Amundi Label. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Label Equilibre has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Amundi Label go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Amundi Label

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to under-perform the Amundi Label. In addition to that, INTUITIVE SURGICAL is 5.47 times more volatile than Amundi Label Equilibre. It trades about -0.04 of its total potential returns per unit of risk. Amundi Label Equilibre is currently generating about 0.15 per unit of volatility. If you would invest  16,863  in Amundi Label Equilibre on December 26, 2024 and sell it today you would earn a total of  670.00  from holding Amundi Label Equilibre or generate 3.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

INTUITIVE SURGICAL  vs.  Amundi Label Equilibre

INTUITIVE SURGICAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days INTUITIVE SURGICAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, INTUITIVE SURGICAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Amundi Label Equilibre

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi Label Equilibre are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Amundi Label is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with INTUITIVE SURGICAL and Amundi Label

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

The idea behind INTUITIVE SURGICAL and Amundi Label Equilibre 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.