Correlation Between MeVis Medical and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both MeVis Medical 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 MeVis Medical and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeVis Medical Solutions and INTUITIVE SURGICAL, you can compare the effects of market volatilities on MeVis Medical 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 MeVis Medical with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and INTUITIVE SURGICAL.
Diversification Opportunities for MeVis Medical and INTUITIVE SURGICAL
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MeVis and INTUITIVE is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and MeVis Medical 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 MeVis Medical Solutions 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 MeVis Medical i.e., MeVis Medical and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between MeVis Medical and INTUITIVE SURGICAL
Assuming the 90 days trading horizon MeVis Medical is expected to generate 4.44 times less return on investment than INTUITIVE SURGICAL. But when comparing it to its historical volatility, MeVis Medical Solutions is 1.94 times less risky than INTUITIVE SURGICAL. It trades about 0.06 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 47,460 in INTUITIVE SURGICAL on November 6, 2024 and sell it today you would earn a total of 7,540 from holding INTUITIVE SURGICAL or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| MeVis Medical Solutions |
| INTUITIVE SURGICAL |
MeVis Medical and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and INTUITIVE SURGICAL
The main advantage of trading using opposite MeVis Medical and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical 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.| MeVis Medical vs. Gruppo Mutuionline SpA | MeVis Medical vs. Cal Maine Foods | MeVis Medical vs. YATRA ONLINE DL 0001 | MeVis Medical vs. SALESFORCE INC CDR |
| INTUITIVE SURGICAL vs. Salesforce | INTUITIVE SURGICAL vs. American Eagle Outfitters | INTUITIVE SURGICAL vs. China Eastern Airlines | INTUITIVE SURGICAL vs. Lamar Advertising |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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