Correlation Between Intuitive Surgical and Hologic
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Hologic 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 Hologic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Hologic, you can compare the effects of market volatilities on Intuitive Surgical and Hologic 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 Hologic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Hologic.
Diversification Opportunities for Intuitive Surgical and Hologic
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intuitive and Hologic is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Hologic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hologic 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 Hologic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hologic has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Hologic go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Hologic
Assuming the 90 days trading horizon Intuitive Surgical is expected to generate 1.53 times more return on investment than Hologic. However, Intuitive Surgical is 1.53 times more volatile than Hologic. It trades about 0.09 of its potential returns per unit of risk. Hologic is currently generating about 0.0 per unit of risk. If you would invest 25,100 in Intuitive Surgical on September 24, 2024 and sell it today you would earn a total of 25,230 from holding Intuitive Surgical or generate 100.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. Hologic
Performance |
| Timeline |
| Intuitive Surgical |
| Hologic |
Intuitive Surgical and Hologic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Hologic
The main advantage of trading using opposite Intuitive Surgical and Hologic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Hologic 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 Hologic will offset losses from the drop in Hologic's long position.| Intuitive Surgical vs. ESSILORLUXOTTICA 12ON | Intuitive Surgical vs. EssilorLuxottica Socit anonyme | Intuitive Surgical vs. Resmed Inc DRC | Intuitive Surgical vs. ResMed Inc |
| Hologic vs. ESSILORLUXOTTICA 12ON | Hologic vs. Intuitive Surgical | Hologic vs. EssilorLuxottica Socit anonyme | Hologic vs. Resmed Inc DRC |
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 Directory module to find actively traded commodities issued by global exchanges.
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