Correlation Between INTUITIVE SURGICAL and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Equitable Holdings, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Equitable Holdings.
Diversification Opportunities for INTUITIVE SURGICAL and Equitable Holdings
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between INTUITIVE and Equitable is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Equitable Holdings go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Equitable Holdings
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.53 times more return on investment than Equitable Holdings. However, INTUITIVE SURGICAL is 1.9 times less risky than Equitable Holdings. It trades about 0.25 of its potential returns per unit of risk. Equitable Holdings is currently generating about 0.12 per unit of risk. If you would invest 47,005 in INTUITIVE SURGICAL on September 1, 2024 and sell it today you would earn a total of 4,195 from holding INTUITIVE SURGICAL or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. Equitable Holdings
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Equitable Holdings |
INTUITIVE SURGICAL and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Equitable Holdings
The main advantage of trading using opposite INTUITIVE SURGICAL and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| INTUITIVE SURGICAL vs. Gold Road Resources | INTUITIVE SURGICAL vs. Gaztransport Technigaz SA | INTUITIVE SURGICAL vs. COPLAND ROAD CAPITAL | INTUITIVE SURGICAL vs. Singapore Airlines Limited |
| Equitable Holdings vs. NN Group NV | Equitable Holdings vs. Superior Plus Corp | Equitable Holdings vs. Origin Agritech | Equitable Holdings vs. Identiv |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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