Correlation Between Lion One and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and INTUITIVE SURGICAL.
Diversification Opportunities for Lion One and INTUITIVE SURGICAL
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and INTUITIVE is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Lion One and INTUITIVE SURGICAL
Assuming the 90 days horizon Lion One Metals is expected to under-perform the INTUITIVE SURGICAL. In addition to that, Lion One is 3.13 times more volatile than INTUITIVE SURGICAL. It trades about -0.06 of its total potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.15 per unit of volatility. If you would invest 28,720 in INTUITIVE SURGICAL on August 24, 2024 and sell it today you would earn a total of 22,530 from holding INTUITIVE SURGICAL or generate 78.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Lion One Metals vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Lion One Metals |
| INTUITIVE SURGICAL |
Lion One and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and INTUITIVE SURGICAL
The main advantage of trading using opposite Lion One and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings |
| INTUITIVE SURGICAL vs. PennantPark Investment | INTUITIVE SURGICAL vs. Lion One Metals | INTUITIVE SURGICAL vs. SLR Investment Corp | INTUITIVE SURGICAL vs. Apollo Investment Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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