Correlation Between INTUITIVE SURGICAL and AptarGroup
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and AptarGroup 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 AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and AptarGroup, you can compare the effects of market volatilities on INTUITIVE SURGICAL and AptarGroup 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 AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and AptarGroup.
Diversification Opportunities for INTUITIVE SURGICAL and AptarGroup
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INTUITIVE and AptarGroup is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup 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 AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and AptarGroup go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and AptarGroup
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.04 times more return on investment than AptarGroup. However, INTUITIVE SURGICAL is 1.04 times more volatile than AptarGroup. It trades about 0.25 of its potential returns per unit of risk. AptarGroup is currently generating about 0.13 per unit of risk. If you would invest 47,325 in INTUITIVE SURGICAL on August 29, 2024 and sell it today you would earn a total of 4,375 from holding INTUITIVE SURGICAL or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. AptarGroup
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| AptarGroup |
INTUITIVE SURGICAL and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and AptarGroup
The main advantage of trading using opposite INTUITIVE SURGICAL and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, AptarGroup 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 AptarGroup will offset losses from the drop in AptarGroup's long position.| INTUITIVE SURGICAL vs. CARSALESCOM | INTUITIVE SURGICAL vs. Carsales | INTUITIVE SURGICAL vs. CNVISION MEDIA | INTUITIVE SURGICAL vs. CODERE ONLINE LUX |
| AptarGroup vs. Jacquet Metal Service | AptarGroup vs. Check Point Software | AptarGroup vs. Computer And Technologies | AptarGroup vs. Amkor Technology |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |