Correlation Between Sartorius Stedim and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Sartorius Stedim 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 Sartorius Stedim and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sartorius Stedim Biotech and Intuitive Surgical, you can compare the effects of market volatilities on Sartorius Stedim 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 Sartorius Stedim with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Stedim and Intuitive Surgical.
Diversification Opportunities for Sartorius Stedim and Intuitive Surgical
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sartorius and Intuitive is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Stedim Biotech and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Sartorius Stedim 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 Sartorius Stedim Biotech 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 Sartorius Stedim i.e., Sartorius Stedim and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Sartorius Stedim and Intuitive Surgical
Assuming the 90 days trading horizon Sartorius Stedim Biotech is expected to under-perform the Intuitive Surgical. In addition to that, Sartorius Stedim is 1.84 times more volatile than Intuitive Surgical. It trades about -0.02 of its total potential returns per unit of risk. Intuitive Surgical is currently generating about 0.14 per unit of volatility. If you would invest 30,115 in Intuitive Surgical on September 12, 2024 and sell it today you would earn a total of 21,635 from holding Intuitive Surgical or generate 71.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sartorius Stedim Biotech vs. Intuitive Surgical
Performance |
| Timeline |
| Sartorius Stedim Biotech |
| Intuitive Surgical |
Sartorius Stedim and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sartorius Stedim and Intuitive Surgical
The main advantage of trading using opposite Sartorius Stedim and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Stedim 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.| Sartorius Stedim vs. TFS FINANCIAL | Sartorius Stedim vs. CDN IMPERIAL BANK | Sartorius Stedim vs. National Storage Affiliates | Sartorius Stedim vs. National Bank Holdings |
| Intuitive Surgical vs. Superior Plus Corp | Intuitive Surgical vs. NMI Holdings | Intuitive Surgical vs. SIVERS SEMICONDUCTORS AB | Intuitive Surgical vs. NorAm Drilling AS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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