Correlation Between INTUITIVE SURGICAL and Identiv
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Identiv 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 Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Identiv, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Identiv.
Diversification Opportunities for INTUITIVE SURGICAL and Identiv
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INTUITIVE and Identiv is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Identiv go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Identiv
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.41 times more return on investment than Identiv. However, INTUITIVE SURGICAL is 2.44 times less risky than Identiv. It trades about 0.28 of its potential returns per unit of risk. Identiv is currently generating about 0.1 per unit of risk. If you would invest 47,530 in INTUITIVE SURGICAL on August 24, 2024 and sell it today you would earn a total of 3,720 from holding INTUITIVE SURGICAL or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTUITIVE SURGICAL vs. Identiv
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Identiv |
INTUITIVE SURGICAL and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Identiv
The main advantage of trading using opposite INTUITIVE SURGICAL and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| INTUITIVE SURGICAL vs. MSAD INSURANCE | INTUITIVE SURGICAL vs. LIFENET INSURANCE CO | INTUITIVE SURGICAL vs. REVO INSURANCE SPA | INTUITIVE SURGICAL vs. SBI Insurance Group |
| Identiv vs. QBE Insurance Group | Identiv vs. Park Hotels Resorts | Identiv vs. COVIVIO HOTELS INH | Identiv vs. VIRG NATL BANKSH |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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