Correlation Between INTUITIVE SURGICAL and NORDIC HALIBUT
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and NORDIC HALIBUT 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 NORDIC HALIBUT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and NORDIC HALIBUT AS, you can compare the effects of market volatilities on INTUITIVE SURGICAL and NORDIC HALIBUT 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 NORDIC HALIBUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and NORDIC HALIBUT.
Diversification Opportunities for INTUITIVE SURGICAL and NORDIC HALIBUT
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTUITIVE and NORDIC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and NORDIC HALIBUT AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDIC HALIBUT AS 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 NORDIC HALIBUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDIC HALIBUT AS has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and NORDIC HALIBUT go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and NORDIC HALIBUT
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.64 times more return on investment than NORDIC HALIBUT. However, INTUITIVE SURGICAL is 1.55 times less risky than NORDIC HALIBUT. It trades about 0.24 of its potential returns per unit of risk. NORDIC HALIBUT AS is currently generating about -0.23 per unit of risk. If you would invest 47,470 in INTUITIVE SURGICAL on August 30, 2024 and sell it today you would earn a total of 4,000 from holding INTUITIVE SURGICAL or generate 8.43% 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. NORDIC HALIBUT AS
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| NORDIC HALIBUT AS |
INTUITIVE SURGICAL and NORDIC HALIBUT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and NORDIC HALIBUT
The main advantage of trading using opposite INTUITIVE SURGICAL and NORDIC HALIBUT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, NORDIC HALIBUT 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 NORDIC HALIBUT will offset losses from the drop in NORDIC HALIBUT's long position.| INTUITIVE SURGICAL vs. CARSALESCOM | INTUITIVE SURGICAL vs. Carsales | INTUITIVE SURGICAL vs. CNVISION MEDIA | INTUITIVE SURGICAL vs. CODERE ONLINE LUX |
| NORDIC HALIBUT vs. MICRONIC MYDATA | NORDIC HALIBUT vs. Columbia Sportswear | NORDIC HALIBUT vs. Fukuyama Transporting Co | NORDIC HALIBUT vs. PARKEN Sport Entertainment |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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