Correlation Between ICU Medical and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both ICU Medical 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 ICU Medical and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and Intuitive Surgical, you can compare the effects of market volatilities on ICU Medical 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 ICU Medical with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and Intuitive Surgical.
Diversification Opportunities for ICU Medical and Intuitive Surgical
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICU and Intuitive is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and ICU Medical 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 ICU Medical 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 ICU Medical i.e., ICU Medical and Intuitive Surgical go up and down completely randomly.
Pair Corralation between ICU Medical and Intuitive Surgical
Given the investment horizon of 90 days ICU Medical is expected to generate 2.03 times less return on investment than Intuitive Surgical. But when comparing it to its historical volatility, ICU Medical is 1.19 times less risky than Intuitive Surgical. It trades about 0.14 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 52,403 in Intuitive Surgical on November 2, 2024 and sell it today you would earn a total of 5,615 from holding Intuitive Surgical or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. Intuitive Surgical
Performance |
| Timeline |
| ICU Medical |
| Intuitive Surgical |
ICU Medical and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and Intuitive Surgical
The main advantage of trading using opposite ICU Medical and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical 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.| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |