Correlation Between Intuitive Surgical and Meihua International
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Meihua International 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 Meihua International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Meihua International Medical, you can compare the effects of market volatilities on Intuitive Surgical and Meihua International 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 Meihua International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Meihua International.
Diversification Opportunities for Intuitive Surgical and Meihua International
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and Meihua is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Meihua International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meihua International 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 Meihua International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meihua International has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Meihua International go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Meihua International
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 0.11 times more return on investment than Meihua International. However, Intuitive Surgical is 9.27 times less risky than Meihua International. It trades about 0.32 of its potential returns per unit of risk. Meihua International Medical is currently generating about -0.07 per unit of risk. If you would invest 50,384 in Intuitive Surgical on September 1, 2024 and sell it today you would earn a total of 3,816 from holding Intuitive Surgical or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. Meihua International Medical
Performance |
| Timeline |
| Intuitive Surgical |
| Meihua International |
Intuitive Surgical and Meihua International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Meihua International
The main advantage of trading using opposite Intuitive Surgical and Meihua International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Meihua International 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 Meihua International will offset losses from the drop in Meihua International's long position.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| Meihua International vs. Daxor | Meihua International vs. InfuSystems Holdings | Meihua International vs. Repro Med Systems | Meihua International vs. LeMaitre Vascular |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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