Correlation Between INTUITIVE SURGICAL and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and BANK HANDLOWY 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 BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and BANK HANDLOWY, you can compare the effects of market volatilities on INTUITIVE SURGICAL and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and BANK HANDLOWY.
Diversification Opportunities for INTUITIVE SURGICAL and BANK HANDLOWY
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INTUITIVE and BANK is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and BANK HANDLOWY
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 2.85 times more return on investment than BANK HANDLOWY. However, INTUITIVE SURGICAL is 2.85 times more volatile than BANK HANDLOWY. It trades about 0.28 of its potential returns per unit of risk. BANK HANDLOWY is currently generating about -0.4 per unit of risk. If you would invest 47,530 in INTUITIVE SURGICAL on August 24, 2024 and sell it today you would earn a total of 3,720 from holding INTUITIVE SURGICAL or generate 7.83% 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. BANK HANDLOWY
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| BANK HANDLOWY |
INTUITIVE SURGICAL and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and BANK HANDLOWY
The main advantage of trading using opposite INTUITIVE SURGICAL and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| INTUITIVE SURGICAL vs. MSAD INSURANCE | INTUITIVE SURGICAL vs. LIFENET INSURANCE CO | INTUITIVE SURGICAL vs. REVO INSURANCE SPA | INTUITIVE SURGICAL vs. SBI Insurance Group |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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