Correlation Between INTUITIVE SURGICAL and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Byggmax Group 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 Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Byggmax Group AB, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Byggmax Group 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 Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Byggmax Group.
Diversification Opportunities for INTUITIVE SURGICAL and Byggmax Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTUITIVE and Byggmax is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB 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 Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Byggmax Group go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Byggmax Group
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.54 times more return on investment than Byggmax Group. However, INTUITIVE SURGICAL is 1.87 times less risky than Byggmax Group. It trades about 0.25 of its potential returns per unit of risk. Byggmax Group AB is currently generating about -0.06 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 Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. Byggmax Group AB
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Byggmax Group AB |
INTUITIVE SURGICAL and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Byggmax Group
The main advantage of trading using opposite INTUITIVE SURGICAL and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Byggmax Group 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 Byggmax Group will offset losses from the drop in Byggmax Group's 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 |
| Byggmax Group vs. CDN IMPERIAL BANK | Byggmax Group vs. PLAYTIKA HOLDING DL 01 | Byggmax Group vs. Seven West Media | Byggmax Group vs. Live Nation 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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