Correlation Between Intuitive Surgical and Baumer SA
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Baumer SA 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 Intuitive Surgical and Baumer SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Baumer SA, you can compare the effects of market volatilities on Intuitive Surgical and Baumer SA 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 Intuitive Surgical with a short position of Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Baumer SA.
Diversification Opportunities for Intuitive Surgical and Baumer SA
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intuitive and Baumer is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA and Intuitive Surgical 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 Intuitive Surgical are associated (or correlated) with Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Baumer SA go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Baumer SA
Assuming the 90 days trading horizon Intuitive Surgical is expected to generate 0.68 times more return on investment than Baumer SA. However, Intuitive Surgical is 1.46 times less risky than Baumer SA. It trades about 0.12 of its potential returns per unit of risk. Baumer SA is currently generating about 0.04 per unit of risk. If you would invest 6,343 in Intuitive Surgical on November 2, 2024 and sell it today you would earn a total of 10,587 from holding Intuitive Surgical or generate 166.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Intuitive Surgical vs. Baumer SA
Performance |
| Timeline |
| Intuitive Surgical |
| Baumer SA |
Intuitive Surgical and Baumer SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Baumer SA
The main advantage of trading using opposite Intuitive Surgical and Baumer SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Baumer SA 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 Baumer SA will offset losses from the drop in Baumer SA's long position.| Intuitive Surgical vs. Teladoc Health | Intuitive Surgical vs. G2D Investments | Intuitive Surgical vs. UnitedHealth Group Incorporated | Intuitive Surgical vs. Nordon Indstrias Metalrgicas |
| Baumer SA vs. Credit Acceptance | Baumer SA vs. Capital One Financial | Baumer SA vs. Sumitomo Mitsui Financial | Baumer SA vs. Applied Materials, |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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