Correlation Between Intuitive Surgical and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Samsung Electronics Co, you can compare the effects of market volatilities on Intuitive Surgical and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Samsung Electronics.
Diversification Opportunities for Intuitive Surgical and Samsung Electronics
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and Samsung is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Samsung Electronics go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Samsung Electronics
Assuming the 90 days trading horizon Intuitive Surgical is expected to generate 0.78 times more return on investment than Samsung Electronics. However, Intuitive Surgical is 1.28 times less risky than Samsung Electronics. It trades about 0.13 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.06 per unit of risk. If you would invest 33,335 in Intuitive Surgical on September 14, 2024 and sell it today you would earn a total of 21,515 from holding Intuitive Surgical or generate 64.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Intuitive Surgical vs. Samsung Electronics Co
Performance |
| Timeline |
| Intuitive Surgical |
| Samsung Electronics |
Intuitive Surgical and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Samsung Electronics
The main advantage of trading using opposite Intuitive Surgical and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Intuitive Surgical vs. Samsung Electronics Co | Intuitive Surgical vs. Samsung Electronics Co | Intuitive Surgical vs. Hyundai Motor | Intuitive Surgical vs. Reliance Industries Ltd |
| Samsung Electronics vs. European Metals Holdings | Samsung Electronics vs. Axfood AB | Samsung Electronics vs. McEwen Mining | Samsung Electronics vs. Roebuck Food 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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