Correlation Between FORWARD AIR and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR 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 FORWARD AIR and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and Intuitive Surgical, you can compare the effects of market volatilities on FORWARD AIR 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 FORWARD AIR with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and Intuitive Surgical.
Diversification Opportunities for FORWARD AIR and Intuitive Surgical
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FORWARD and Intuitive is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and FORWARD AIR 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 FORWARD AIR P 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 FORWARD AIR i.e., FORWARD AIR and Intuitive Surgical go up and down completely randomly.
Pair Corralation between FORWARD AIR and Intuitive Surgical
Assuming the 90 days horizon FORWARD AIR is expected to generate 1.19 times less return on investment than Intuitive Surgical. In addition to that, FORWARD AIR is 5.51 times more volatile than Intuitive Surgical. It trades about 0.06 of its total potential returns per unit of risk. Intuitive Surgical is currently generating about 0.38 per unit of volatility. If you would invest 46,230 in Intuitive Surgical on September 1, 2024 and sell it today you would earn a total of 4,920 from holding Intuitive Surgical or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FORWARD AIR P vs. Intuitive Surgical
Performance |
| Timeline |
| FORWARD AIR P |
| Intuitive Surgical |
FORWARD AIR and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORWARD AIR and Intuitive Surgical
The main advantage of trading using opposite FORWARD AIR and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR 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.| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
| Intuitive Surgical vs. Universal Insurance Holdings | Intuitive Surgical vs. The Hanover Insurance | Intuitive Surgical vs. SBI Insurance Group | Intuitive Surgical vs. Air Lease |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |