Correlation Between Ping An and INTUITIVE SURGICAL
Can any of the company-specific risk be diversified away by investing in both Ping An 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 Ping An and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ping An Insurance and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Ping An 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 Ping An with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and INTUITIVE SURGICAL.
Diversification Opportunities for Ping An and INTUITIVE SURGICAL
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ping and INTUITIVE is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Ping An 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 Ping An Insurance 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 Ping An i.e., Ping An and INTUITIVE SURGICAL go up and down completely randomly.
Pair Corralation between Ping An and INTUITIVE SURGICAL
Assuming the 90 days horizon Ping An Insurance is expected to under-perform the INTUITIVE SURGICAL. In addition to that, Ping An is 1.35 times more volatile than INTUITIVE SURGICAL. It trades about 0.0 of its total potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.19 per unit of volatility. If you would invest 44,240 in INTUITIVE SURGICAL on September 12, 2024 and sell it today you would earn a total of 6,540 from holding INTUITIVE SURGICAL or generate 14.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. INTUITIVE SURGICAL
Performance |
| Timeline |
| Ping An Insurance |
| INTUITIVE SURGICAL |
Ping An and INTUITIVE SURGICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and INTUITIVE SURGICAL
The main advantage of trading using opposite Ping An and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An 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.| Ping An vs. Superior Plus Corp | Ping An vs. SIVERS SEMICONDUCTORS AB | Ping An vs. CHINA HUARONG ENERHD 50 | Ping An vs. NORDIC HALIBUT AS |
| INTUITIVE SURGICAL vs. PSI Software AG | INTUITIVE SURGICAL vs. ATOSS SOFTWARE | INTUITIVE SURGICAL vs. AEGEAN AIRLINES | INTUITIVE SURGICAL vs. Constellation Software |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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