Correlation Between INTUITIVE SURGICAL and Airbus SE
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Airbus SE 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 Airbus SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Airbus SE, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Airbus SE 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 Airbus SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Airbus SE.
Diversification Opportunities for INTUITIVE SURGICAL and Airbus SE
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTUITIVE and Airbus is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Airbus SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus SE 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 Airbus SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus SE has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Airbus SE go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Airbus SE
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.95 times more return on investment than Airbus SE. However, INTUITIVE SURGICAL is 1.05 times less risky than Airbus SE. It trades about 0.31 of its potential returns per unit of risk. Airbus SE is currently generating about -0.01 per unit of risk. If you would invest 47,325 in INTUITIVE SURGICAL on August 28, 2024 and sell it today you would earn a total of 5,025 from holding INTUITIVE SURGICAL or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. Airbus SE
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Airbus SE |
INTUITIVE SURGICAL and Airbus SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Airbus SE
The main advantage of trading using opposite INTUITIVE SURGICAL and Airbus SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Airbus SE 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 Airbus SE will offset losses from the drop in Airbus SE's long position.| INTUITIVE SURGICAL vs. PENN NATL GAMING | INTUITIVE SURGICAL vs. GAMING FAC SA | INTUITIVE SURGICAL vs. Xinhua Winshare Publishing | INTUITIVE SURGICAL vs. TSOGO SUN GAMING |
| Airbus SE vs. SEKISUI CHEMICAL | Airbus SE vs. COLUMBIA SPORTSWEAR | Airbus SE vs. PLAYSTUDIOS A DL 0001 | Airbus SE vs. Sinopec Shanghai Petrochemical |
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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