Correlation Between Haleon Plc and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Haleon Plc 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 Haleon Plc and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haleon plc and Intuitive Surgical, you can compare the effects of market volatilities on Haleon Plc 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 Haleon Plc with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haleon Plc and Intuitive Surgical.
Diversification Opportunities for Haleon Plc and Intuitive Surgical
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haleon and Intuitive is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Haleon plc and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Haleon Plc 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 Haleon plc 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 Haleon Plc i.e., Haleon Plc and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Haleon Plc and Intuitive Surgical
Considering the 90-day investment horizon Haleon Plc is expected to generate 2.66 times less return on investment than Intuitive Surgical. But when comparing it to its historical volatility, Haleon plc is 1.32 times less risky than Intuitive Surgical. It trades about 0.05 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 26,631 in Intuitive Surgical on August 27, 2024 and sell it today you would earn a total of 28,156 from holding Intuitive Surgical or generate 105.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haleon plc vs. Intuitive Surgical
Performance |
| Timeline |
| Haleon plc |
| Intuitive Surgical |
Haleon Plc and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haleon Plc and Intuitive Surgical
The main advantage of trading using opposite Haleon Plc and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haleon Plc 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.| Haleon Plc vs. Teva Pharma Industries | Haleon Plc vs. Bausch Health Companies | Haleon Plc vs. Zoetis Inc | Haleon Plc vs. Takeda Pharmaceutical Co |
| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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