Correlation Between SBI Insurance and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both SBI Insurance 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 SBI Insurance and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and Intuitive Surgical, you can compare the effects of market volatilities on SBI Insurance 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 SBI Insurance with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and Intuitive Surgical.
Diversification Opportunities for SBI Insurance and Intuitive Surgical
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SBI and Intuitive is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and SBI Insurance 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 SBI Insurance Group 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 SBI Insurance i.e., SBI Insurance and Intuitive Surgical go up and down completely randomly.
Pair Corralation between SBI Insurance and Intuitive Surgical
Assuming the 90 days trading horizon SBI Insurance is expected to generate 19.56 times less return on investment than Intuitive Surgical. In addition to that, SBI Insurance is 1.14 times more volatile than Intuitive Surgical. It trades about 0.01 of its total potential returns per unit of risk. Intuitive Surgical is currently generating about 0.14 per unit of volatility. If you would invest 35,630 in Intuitive Surgical on September 3, 2024 and sell it today you would earn a total of 15,520 from holding Intuitive Surgical or generate 43.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. Intuitive Surgical
Performance |
| Timeline |
| SBI Insurance Group |
| Intuitive Surgical |
SBI Insurance and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and Intuitive Surgical
The main advantage of trading using opposite SBI Insurance and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance 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.| SBI Insurance vs. Richardson Electronics | SBI Insurance vs. Methode Electronics | SBI Insurance vs. HOCHSCHILD MINING | SBI Insurance vs. Benchmark Electronics |
| Intuitive Surgical vs. GEAR4MUSIC LS 10 | Intuitive Surgical vs. MOVIE GAMES SA | Intuitive Surgical vs. LION ONE METALS | Intuitive Surgical vs. YOOMA WELLNESS INC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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