Correlation Between Global X and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and Intuitive Surgical, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Intuitive Surgical.
Diversification Opportunities for Global X and Intuitive Surgical
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Intuitive is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Global X 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 Global X Funds 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 Global X i.e., Global X and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Global X and Intuitive Surgical
Assuming the 90 days trading horizon Global X is expected to generate 1.48 times less return on investment than Intuitive Surgical. But when comparing it to its historical volatility, Global X Funds is 1.36 times less risky than Intuitive Surgical. It trades about 0.09 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,110 in Intuitive Surgical on August 30, 2024 and sell it today you would earn a total of 8,970 from holding Intuitive Surgical or generate 126.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. Intuitive Surgical
Performance |
| Timeline |
| Global X Funds |
| Intuitive Surgical |
Global X and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Intuitive Surgical
The main advantage of trading using opposite Global X and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. Taiwan Semiconductor Manufacturing | Global X vs. Microsoft | Global X vs. Banco Santander Chile | Global X vs. Alphabet |
| Intuitive Surgical vs. Bank of America | Intuitive Surgical vs. Waste Management | Intuitive Surgical vs. Global X Funds | Intuitive Surgical vs. Ross Stores |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world |