Correlation Between INTUITIVE SURGICAL and Longfor Group
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Longfor 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 Longfor 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 Longfor Group Holdings, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Longfor 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 Longfor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Longfor Group.
Diversification Opportunities for INTUITIVE SURGICAL and Longfor Group
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTUITIVE and Longfor is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Longfor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longfor Group 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 Longfor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longfor Group Holdings has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Longfor Group go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Longfor Group
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.4 times more return on investment than Longfor Group. However, INTUITIVE SURGICAL is 2.47 times less risky than Longfor Group. It trades about 0.26 of its potential returns per unit of risk. Longfor Group Holdings is currently generating about -0.17 per unit of risk. If you would invest 47,325 in INTUITIVE SURGICAL on August 29, 2024 and sell it today you would earn a total of 4,375 from holding INTUITIVE SURGICAL or generate 9.24% 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. Longfor Group Holdings
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Longfor Group Holdings |
INTUITIVE SURGICAL and Longfor Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Longfor Group
The main advantage of trading using opposite INTUITIVE SURGICAL and Longfor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Longfor 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 Longfor Group will offset losses from the drop in Longfor Group's long position.| INTUITIVE SURGICAL vs. Wizz Air Holdings | INTUITIVE SURGICAL vs. ALTAIR RES INC | INTUITIVE SURGICAL vs. WIZZ AIR HLDGUNSPADR4 | INTUITIVE SURGICAL vs. DIVERSIFIED ROYALTY |
| Longfor Group vs. ETFS Coffee ETC | Longfor Group vs. Zijin Mining Group | Longfor Group vs. LGI Homes | Longfor Group vs. GALENA MINING LTD |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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