Correlation Between Lowes Companies and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Lowes Companies and INTUITIVE SURGICAL 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 Lowes Companies and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowes Companies and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Lowes Companies and INTUITIVE SURGICAL 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 Lowes Companies with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowes Companies and INTUITIVE SURGICAL.
Diversification Opportunities for Lowes Companies and INTUITIVE SURGICAL
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lowes and INTUITIVE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lowes Companies and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Lowes Companies 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 Lowes Companies are associated (or correlated) with INTUITIVE SURGICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTUITIVE SURGICAL has no effect on the direction of Lowes Companies i.e., Lowes Companies and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Lowes Companies and INTUITIVE SURGICAL
Assuming the 90 days horizon Lowes Companies is expected to generate 1.43 times less return on investment than INTUITIVE SURGICAL. In addition to that, Lowes Companies is 1.24 times more volatile than INTUITIVE SURGICAL. It trades about 0.16 of its total potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.28 per unit of volatility. If you would invest 46,800 in INTUITIVE SURGICAL on September 3, 2024 and sell it today you would earn a total of 4,400 from holding INTUITIVE SURGICAL or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lowes Companies vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Lowes Companies |
| INTUITIVE SURGICAL |
Lowes Companies and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lowes Companies and INTUITIVE SURGICAL
The main advantage of trading using opposite Lowes Companies and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowes Companies position performs unexpectedly, INTUITIVE SURGICAL 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 INTUITIVE SURGICAL will offset losses from the drop in INTUITIVE SURGICAL's long position.| Lowes Companies vs. BURLINGTON STORES | Lowes Companies vs. Chongqing Machinery Electric | Lowes Companies vs. Retail Estates NV | Lowes Companies vs. MARKET VECTR RETAIL |
| INTUITIVE SURGICAL vs. MICRONIC MYDATA | INTUITIVE SURGICAL vs. DATANG INTL POW | INTUITIVE SURGICAL vs. Nordic Semiconductor ASA | INTUITIVE SURGICAL vs. ON SEMICONDUCTOR |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |