Correlation Between Intuitive Surgical and Straumann Holding
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Straumann Holding 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 Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Straumann Holding AG, you can compare the effects of market volatilities on Intuitive Surgical and Straumann Holding 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 Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Straumann Holding.
Diversification Opportunities for Intuitive Surgical and Straumann Holding
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and Straumann is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding 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 Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Straumann Holding go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Straumann Holding
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 0.78 times more return on investment than Straumann Holding. However, Intuitive Surgical is 1.29 times less risky than Straumann Holding. It trades about 0.14 of its potential returns per unit of risk. Straumann Holding AG is currently generating about 0.02 per unit of risk. If you would invest 40,386 in Intuitive Surgical on September 1, 2024 and sell it today you would earn a total of 13,814 from holding Intuitive Surgical or generate 34.2% 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. Straumann Holding AG
Performance |
| Timeline |
| Intuitive Surgical |
| Straumann Holding |
Intuitive Surgical and Straumann Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Straumann Holding
The main advantage of trading using opposite Intuitive Surgical and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Straumann Holding 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 Straumann Holding will offset losses from the drop in Straumann Holding's long position.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA | Straumann Holding vs. EssilorLuxottica Socit anonyme |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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