Correlation Between INTUITIVE SURGICAL and CrowdStrike Holdings
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and CrowdStrike Holdings 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 CrowdStrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and CrowdStrike Holdings, you can compare the effects of market volatilities on INTUITIVE SURGICAL and CrowdStrike Holdings 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 CrowdStrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and CrowdStrike Holdings.
Diversification Opportunities for INTUITIVE SURGICAL and CrowdStrike Holdings
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between INTUITIVE and CrowdStrike is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and CrowdStrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrowdStrike Holdings 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 CrowdStrike Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CrowdStrike Holdings has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and CrowdStrike Holdings go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and CrowdStrike Holdings
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.66 times less return on investment than CrowdStrike Holdings. But when comparing it to its historical volatility, INTUITIVE SURGICAL is 1.54 times less risky than CrowdStrike Holdings. It trades about 0.1 of its potential returns per unit of risk. CrowdStrike Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,701 in CrowdStrike Holdings on October 14, 2024 and sell it today you would earn a total of 25,034 from holding CrowdStrike Holdings or generate 258.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. CrowdStrike Holdings
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| CrowdStrike Holdings |
INTUITIVE SURGICAL and CrowdStrike Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and CrowdStrike Holdings
The main advantage of trading using opposite INTUITIVE SURGICAL and CrowdStrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, CrowdStrike Holdings 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 CrowdStrike Holdings will offset losses from the drop in CrowdStrike Holdings' long position.| INTUITIVE SURGICAL vs. Fast Retailing Co | INTUITIVE SURGICAL vs. Data Modul AG | INTUITIVE SURGICAL vs. Information Services International Dentsu | INTUITIVE SURGICAL vs. Cass Information Systems |
| CrowdStrike Holdings vs. American Airlines Group | CrowdStrike Holdings vs. SINGAPORE AIRLINES | CrowdStrike Holdings vs. JAPAN AIRLINES | CrowdStrike Holdings vs. HK Electric Investments |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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