Correlation Between INTUITIVE SURGICAL and Sino Land
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and Sino Land 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 Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and Sino Land, you can compare the effects of market volatilities on INTUITIVE SURGICAL and Sino Land 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 Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and Sino Land.
Diversification Opportunities for INTUITIVE SURGICAL and Sino Land
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INTUITIVE and Sino is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Sino Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land 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 Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Sino Land go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and Sino Land
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 4.65 times less return on investment than Sino Land. But when comparing it to its historical volatility, INTUITIVE SURGICAL is 8.15 times less risky than Sino Land. It trades about 0.39 of its potential returns per unit of risk. Sino Land is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Sino Land on August 25, 2024 and sell it today you would earn a total of 35.00 from holding Sino Land or generate 59.32% 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. Sino Land
Performance |
| Timeline |
| INTUITIVE SURGICAL |
| Sino Land |
INTUITIVE SURGICAL and Sino Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTUITIVE SURGICAL and Sino Land
The main advantage of trading using opposite INTUITIVE SURGICAL and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, Sino Land 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 Sino Land will offset losses from the drop in Sino Land's long position.| INTUITIVE SURGICAL vs. Texas Roadhouse | INTUITIVE SURGICAL vs. ZINC MEDIA GR | INTUITIVE SURGICAL vs. Fukuyama Transporting Co | INTUITIVE SURGICAL vs. Tencent Music Entertainment |
| Sino Land vs. MGIC INVESTMENT | Sino Land vs. JIAHUA STORES | Sino Land vs. AEON STORES | Sino Land vs. Caseys General Stores |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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