Correlation Between INTUITIVE SURGICAL and Sabre Insurance
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Sabre Insurance 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 Sabre Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Sabre Insurance Group, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Sabre Insurance 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 Sabre Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Sabre Insurance.
Diversification Opportunities for INTUITIVE SURGICAL and Sabre Insurance
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTUITIVE and Sabre is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Sabre Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Insurance Group 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 Sabre Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Insurance Group has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Sabre Insurance go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Sabre Insurance
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.54 times more return on investment than Sabre Insurance. However, INTUITIVE SURGICAL is 1.84 times less risky than Sabre Insurance. It trades about 0.04 of its potential returns per unit of risk. Sabre Insurance Group is currently generating about 0.0 per unit of risk. If you would invest 50,780 in INTUITIVE SURGICAL on October 11, 2024 and sell it today you would earn a total of 440.00 from holding INTUITIVE SURGICAL or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. Sabre Insurance Group
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Sabre Insurance Group |
INTUITIVE SURGICAL and Sabre Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Sabre Insurance
The main advantage of trading using opposite INTUITIVE SURGICAL and Sabre Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Sabre Insurance 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 Sabre Insurance will offset losses from the drop in Sabre Insurance's long position.| INTUITIVE SURGICAL vs. Kingdee International Software | INTUITIVE SURGICAL vs. SOFI TECHNOLOGIES | INTUITIVE SURGICAL vs. THAI BEVERAGE | INTUITIVE SURGICAL vs. Tsingtao Brewery |
| Sabre Insurance vs. International Game Technology | Sabre Insurance vs. PENN NATL GAMING | Sabre Insurance vs. JD SPORTS FASH | Sabre Insurance vs. GAMING FAC SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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