Correlation Between 26442CBC7 and Intuitive Surgical

Can any of the company-specific risk be diversified away by investing in both 26442CBC7 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 26442CBC7 and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUK 345 15 APR 51 and Intuitive Surgical, you can compare the effects of market volatilities on 26442CBC7 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 26442CBC7 with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442CBC7 and Intuitive Surgical.

Diversification Opportunities for 26442CBC7 and Intuitive Surgical

-0.52

Correlation Coefficient

26442CBC7  Intuitive Surgical

Excellent diversification

The 3 months correlation between 26442CBC7 and Intuitive is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding DUK 345 15 APR 51 and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and 26442CBC7 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 DUK 345 15 APR 51 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 26442CBC7 i.e., 26442CBC7 and Intuitive Surgical go up and down completely randomly.

Pair Corralation between 26442CBC7 and Intuitive Surgical

Assuming the 90 days trading horizon DUK 345 15 APR 51 is expected to generate 0.32 times more return on investment than Intuitive Surgical. However, DUK 345 15 APR 51 is 3.08 times less risky than Intuitive Surgical. It trades about 0.05 of its potential returns per unit of risk. Intuitive Surgical is currently generating about -0.02 per unit of risk. If you would invest  6,928  in DUK 345 15 APR 51 on December 26, 2024 and sell it today you would earn a total of  61.00  from holding DUK 345 15 APR 51 or generate 0.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	46.67%
Values	Daily Returns

DUK 345 15 APR 51  vs.  Intuitive Surgical

DUK 345 15

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DUK 345 15 APR 51 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 26442CBC7 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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. Despite nearly stable basic indicators, Intuitive Surgical is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 26442CBC7 and Intuitive Surgical

The main advantage of trading using opposite 26442CBC7 and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442CBC7 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 DUK 345 15 APR 51 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.