Correlation Between INTUITIVE SURGICAL and PT Astra
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and PT Astra 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 PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and PT Astra International, you can compare the effects of market volatilities on INTUITIVE SURGICAL and PT Astra 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 PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and PT Astra.
Diversification Opportunities for INTUITIVE SURGICAL and PT Astra
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTUITIVE and ASJA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International 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 PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and PT Astra go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and PT Astra
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.38 times more return on investment than PT Astra. However, INTUITIVE SURGICAL is 2.63 times less risky than PT Astra. It trades about 0.26 of its potential returns per unit of risk. PT Astra International is currently generating about 0.02 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 4,375 from holding INTUITIVE SURGICAL or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. PT Astra International
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| PT Astra International |
INTUITIVE SURGICAL and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and PT Astra
The main advantage of trading using opposite INTUITIVE SURGICAL and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, PT Astra 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 PT Astra will offset losses from the drop in PT Astra's long position.| INTUITIVE SURGICAL vs. Wizz Air Holdings | INTUITIVE SURGICAL vs. ALTAIR RES INC | INTUITIVE SURGICAL vs. WIZZ AIR HLDGUNSPADR4 | INTUITIVE SURGICAL vs. DIVERSIFIED ROYALTY |
| PT Astra vs. Lion One Metals | PT Astra vs. UNITED RENTALS | PT Astra vs. PLAY2CHILL SA ZY | PT Astra vs. VIAPLAY GROUP AB |
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 Correlations module to find global opportunities by holding instruments from different markets.
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