Correlation Between Man Wah and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Man Wah 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 Man Wah and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Man Wah Holdings and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Man Wah 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 Man Wah with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Wah and INTUITIVE SURGICAL.
Diversification Opportunities for Man Wah and INTUITIVE SURGICAL
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Man and INTUITIVE is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Man Wah Holdings and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Man Wah 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 Man Wah Holdings 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 Man Wah i.e., Man Wah and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Man Wah and INTUITIVE SURGICAL
Assuming the 90 days horizon Man Wah Holdings is expected to under-perform the INTUITIVE SURGICAL. In addition to that, Man Wah is 1.94 times more volatile than INTUITIVE SURGICAL. It trades about -0.03 of its total potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.17 per unit of volatility. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Man Wah Holdings vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Man Wah Holdings |
| INTUITIVE SURGICAL |
Man Wah and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Man Wah and INTUITIVE SURGICAL
The main advantage of trading using opposite Man Wah and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Man Wah 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.| Man Wah vs. SK TELECOM TDADR | Man Wah vs. Zoom Video Communications | Man Wah vs. INTERSHOP Communications Aktiengesellschaft | Man Wah vs. COMBA TELECOM SYST |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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