Correlation Between Intuitive Surgical and Haemonetics
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Haemonetics 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 Haemonetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Haemonetics, you can compare the effects of market volatilities on Intuitive Surgical and Haemonetics 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 Haemonetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Haemonetics.
Diversification Opportunities for Intuitive Surgical and Haemonetics
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intuitive and Haemonetics is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Haemonetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haemonetics 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 Haemonetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haemonetics has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Haemonetics go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Haemonetics
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 4.62 times less return on investment than Haemonetics. But when comparing it to its historical volatility, Intuitive Surgical is 2.58 times less risky than Haemonetics. It trades about 0.17 of its potential returns per unit of risk. Haemonetics is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 7,310 in Haemonetics on August 30, 2024 and sell it today you would earn a total of 1,543 from holding Haemonetics or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. Haemonetics
Performance |
| Timeline |
| Intuitive Surgical |
| Haemonetics |
Intuitive Surgical and Haemonetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Haemonetics
The main advantage of trading using opposite Intuitive Surgical and Haemonetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Haemonetics 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 Haemonetics will offset losses from the drop in Haemonetics' long position.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| Haemonetics vs. Merit Medical Systems | Haemonetics vs. AngioDynamics | Haemonetics vs. AptarGroup | Haemonetics vs. Envista Holdings Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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