Correlation Between Sharps Technology and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Sharps Technology 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 Sharps Technology and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and Intuitive Surgical, you can compare the effects of market volatilities on Sharps Technology 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 Sharps Technology with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Intuitive Surgical.
Diversification Opportunities for Sharps Technology and Intuitive Surgical
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharps and Intuitive is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Sharps Technology 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 Sharps Technology 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 Sharps Technology i.e., Sharps Technology and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Sharps Technology and Intuitive Surgical
Given the investment horizon of 90 days Sharps Technology is expected to generate 5.52 times more return on investment than Intuitive Surgical. However, Sharps Technology is 5.52 times more volatile than Intuitive Surgical. It trades about 0.22 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.3 per unit of risk. If you would invest 296.00 in Sharps Technology on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Sharps Technology or generate 27.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. Intuitive Surgical
Performance |
| Timeline |
| Sharps Technology |
| Intuitive Surgical |
Sharps Technology and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Intuitive Surgical
The main advantage of trading using opposite Sharps Technology and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology 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.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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