Correlation Between Intuitive Surgical and G Medical
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and G Medical 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 G Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and G Medical Innovations, you can compare the effects of market volatilities on Intuitive Surgical and G Medical 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 G Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and G Medical.
Diversification Opportunities for Intuitive Surgical and G Medical
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and GMVD is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and G Medical Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Medical Innovations 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 G Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Medical Innovations has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and G Medical go up and down completely randomly.
Pair Corralation between Intuitive Surgical and G Medical
If you would invest 48,221 in Intuitive Surgical on August 28, 2024 and sell it today you would earn a total of 5,434 from holding Intuitive Surgical or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Intuitive Surgical vs. G Medical Innovations
Performance |
| Timeline |
| Intuitive Surgical |
| G Medical Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intuitive Surgical and G Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and G Medical
The main advantage of trading using opposite Intuitive Surgical and G Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, G Medical 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 G Medical will offset losses from the drop in G Medical's long position.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| G Medical vs. Innovative Eyewear | G Medical vs. Sharps Technology | G Medical vs. JIN MEDICAL INTERNATIONAL | G Medical vs. Nexgel 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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