Correlation Between INTUITIVE SURGICAL and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Deutsche Bank 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 Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Deutsche Bank.
Diversification Opportunities for INTUITIVE SURGICAL and Deutsche Bank
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTUITIVE and Deutsche is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Deutsche Bank go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Deutsche Bank
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.0 times more return on investment than Deutsche Bank. However, INTUITIVE SURGICAL is 1.0 times less risky than Deutsche Bank. It trades about 0.39 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.04 per unit of risk. If you would invest 47,210 in INTUITIVE SURGICAL on August 25, 2024 and sell it today you would earn a total of 6,170 from holding INTUITIVE SURGICAL or generate 13.07% 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. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Deutsche Bank Aktien |
INTUITIVE SURGICAL and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Deutsche Bank
The main advantage of trading using opposite INTUITIVE SURGICAL and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| INTUITIVE SURGICAL vs. PennantPark Investment | INTUITIVE SURGICAL vs. Lion One Metals | INTUITIVE SURGICAL vs. SLR Investment Corp | INTUITIVE SURGICAL vs. Apollo Investment Corp |
| Deutsche Bank vs. Postal Savings Bank | Deutsche Bank vs. Superior Plus Corp | Deutsche Bank vs. NMI Holdings | Deutsche Bank vs. Origin Agritech |
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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