Correlation Between INTUITIVE SURGICAL and Caixabank Seleccin

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Caixabank Seleccin

0.93

Correlation Coefficient

INTUITIVE SURGICAL  Caixabank Seleccin

Almost no diversification

The 3 months correlation between INTUITIVE and Caixabank is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Caixabank Seleccin Tendencias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank Seleccin 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 Caixabank Seleccin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank Seleccin has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Caixabank Seleccin go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Caixabank Seleccin

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to under-perform the Caixabank Seleccin. In addition to that, INTUITIVE SURGICAL is 2.49 times more volatile than Caixabank Seleccin Tendencias. It trades about -0.04 of its total potential returns per unit of risk. Caixabank Seleccin Tendencias is currently generating about -0.06 per unit of volatility. If you would invest  1,639  in Caixabank Seleccin Tendencias on December 28, 2024 and sell it today you would lose (59.00) from holding Caixabank Seleccin Tendencias or give up 3.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	95.24%
Values	Daily Returns

INTUITIVE SURGICAL  vs.  Caixabank Seleccin Tendencias

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.

Caixabank Seleccin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caixabank Seleccin Tendencias has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Caixabank Seleccin 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 Caixabank Seleccin

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

The idea behind INTUITIVE SURGICAL and Caixabank Seleccin Tendencias 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.