Correlation Between INTUITIVE SURGICAL and Lyxor 1
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Lyxor 1 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 Lyxor 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Lyxor 1 , you can compare the effects of market volatilities on INTUITIVE SURGICAL and Lyxor 1 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 Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Lyxor 1.
Diversification Opportunities for INTUITIVE SURGICAL and Lyxor 1
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTUITIVE and Lyxor is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 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 Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Lyxor 1 go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Lyxor 1
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.94 times less return on investment than Lyxor 1. In addition to that, INTUITIVE SURGICAL is 2.18 times more volatile than Lyxor 1 . It trades about 0.08 of its total potential returns per unit of risk. Lyxor 1 is currently generating about 0.35 per unit of volatility. If you would invest 2,462 in Lyxor 1 on September 13, 2024 and sell it today you would earn a total of 124.00 from holding Lyxor 1 or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. Lyxor 1
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Lyxor 1 |
INTUITIVE SURGICAL and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Lyxor 1
The main advantage of trading using opposite INTUITIVE SURGICAL and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Lyxor 1 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 Lyxor 1 will offset losses from the drop in Lyxor 1's long position.| INTUITIVE SURGICAL vs. JD SPORTS FASH | INTUITIVE SURGICAL vs. Universal Display | INTUITIVE SURGICAL vs. EIDESVIK OFFSHORE NK | INTUITIVE SURGICAL vs. GLG LIFE TECH |
| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor Index Fund | Lyxor 1 vs. Lyxor 1 TecDAX |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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