Correlation Between Gaztransport Technigaz and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz 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 Gaztransport Technigaz and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SA and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Gaztransport Technigaz 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 Gaztransport Technigaz with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and INTUITIVE SURGICAL.
Diversification Opportunities for Gaztransport Technigaz and INTUITIVE SURGICAL
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gaztransport and INTUITIVE is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Gaztransport Technigaz 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 Gaztransport Technigaz SA 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 Gaztransport Technigaz i.e., Gaztransport Technigaz and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and INTUITIVE SURGICAL
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 2.08 times less return on investment than INTUITIVE SURGICAL. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 1.37 times less risky than INTUITIVE SURGICAL. It trades about 0.13 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 43,945 in INTUITIVE SURGICAL on September 3, 2024 and sell it today you would earn a total of 7,255 from holding INTUITIVE SURGICAL or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Gaztransport Technigaz |
| INTUITIVE SURGICAL |
Gaztransport Technigaz and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and INTUITIVE SURGICAL
The main advantage of trading using opposite Gaztransport Technigaz and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz 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.| Gaztransport Technigaz vs. NISSAN CHEMICAL IND | Gaztransport Technigaz vs. Siamgas And Petrochemicals | Gaztransport Technigaz vs. STMicroelectronics NV | Gaztransport Technigaz vs. LPKF Laser Electronics |
| INTUITIVE SURGICAL vs. MICRONIC MYDATA | INTUITIVE SURGICAL vs. DATANG INTL POW | INTUITIVE SURGICAL vs. Nordic Semiconductor ASA | INTUITIVE SURGICAL vs. ON SEMICONDUCTOR |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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