Correlation Between Haier Smart and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Haier Smart 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 Haier Smart and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Haier Smart 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 Haier Smart with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and INTUITIVE SURGICAL.
Diversification Opportunities for Haier Smart and INTUITIVE SURGICAL
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haier and INTUITIVE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Haier Smart 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 Haier Smart Home 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 Haier Smart i.e., Haier Smart and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Haier Smart and INTUITIVE SURGICAL
Assuming the 90 days trading horizon Haier Smart is expected to generate 1.27 times less return on investment than INTUITIVE SURGICAL. But when comparing it to its historical volatility, Haier Smart Home is 1.31 times less risky than INTUITIVE SURGICAL. It trades about 0.17 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 50,910 in INTUITIVE SURGICAL on October 15, 2024 and sell it today you would earn a total of 1,840 from holding INTUITIVE SURGICAL or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Haier Smart Home |
| INTUITIVE SURGICAL |
Haier Smart and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and INTUITIVE SURGICAL
The main advantage of trading using opposite Haier Smart and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart 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.| Haier Smart vs. ZINC MEDIA GR | Haier Smart vs. Hollywood Bowl Group | Haier Smart vs. SQUIRREL MEDIA SA | Haier Smart vs. CDN IMPERIAL BANK |
| INTUITIVE SURGICAL vs. Aedas Homes SA | INTUITIVE SURGICAL vs. Haier Smart Home | INTUITIVE SURGICAL vs. KENEDIX OFFICE INV | INTUITIVE SURGICAL vs. CAIRN HOMES EO |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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