Correlation Between BTG Pactual and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both BTG Pactual 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 BTG Pactual and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTG Pactual Logstica and Intuitive Surgical, you can compare the effects of market volatilities on BTG Pactual 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 BTG Pactual with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTG Pactual and Intuitive Surgical.
Diversification Opportunities for BTG Pactual and Intuitive Surgical
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTG and Intuitive is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding BTG Pactual Logstica and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and BTG Pactual 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 BTG Pactual Logstica 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 BTG Pactual i.e., BTG Pactual and Intuitive Surgical go up and down completely randomly.
Pair Corralation between BTG Pactual and Intuitive Surgical
Assuming the 90 days trading horizon BTG Pactual Logstica is expected to under-perform the Intuitive Surgical. But the fund apears to be less risky and, when comparing its historical volatility, BTG Pactual Logstica is 2.49 times less risky than Intuitive Surgical. The fund trades about -0.05 of its potential returns per unit of risk. The Intuitive Surgical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,460 in Intuitive Surgical on September 12, 2024 and sell it today you would earn a total of 7,840 from holding Intuitive Surgical or generate 92.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
BTG Pactual Logstica vs. Intuitive Surgical
Performance |
| Timeline |
| BTG Pactual Logstica |
| Intuitive Surgical |
BTG Pactual and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTG Pactual and Intuitive Surgical
The main advantage of trading using opposite BTG Pactual and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTG Pactual 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.| BTG Pactual vs. BTG Pactual Teva | BTG Pactual vs. BTG PACTUAL CRDITO | BTG Pactual vs. FDO INV IMOB | BTG Pactual vs. SUPREMO FUNDO DE |
| Intuitive Surgical vs. Tyson Foods | Intuitive Surgical vs. The Home Depot | Intuitive Surgical vs. Metalrgica Riosulense SA | Intuitive Surgical vs. Charter Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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