Correlation Between Intuitive Surgical and Phoenix Holdings
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Phoenix Holdings 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 Intuitive Surgical and Phoenix Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and The Phoenix Holdings, you can compare the effects of market volatilities on Intuitive Surgical and Phoenix Holdings 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 Intuitive Surgical with a short position of Phoenix Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Phoenix Holdings.
Diversification Opportunities for Intuitive Surgical and Phoenix Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intuitive and Phoenix is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and The Phoenix Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Holdings and Intuitive Surgical 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 Intuitive Surgical are associated (or correlated) with Phoenix Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Holdings has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Phoenix Holdings go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Phoenix Holdings
Given the investment horizon of 90 days Intuitive Surgical is expected to under-perform the Phoenix Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Surgical is 1.87 times less risky than Phoenix Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The The Phoenix Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 362,182 in The Phoenix Holdings on January 25, 2024 and sell it today you would lose (9,182) from holding The Phoenix Holdings or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
Intuitive Surgical vs. The Phoenix Holdings
Performance |
| Timeline |
| Intuitive Surgical |
| Phoenix Holdings |
Intuitive Surgical and Phoenix Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Phoenix Holdings
The main advantage of trading using opposite Intuitive Surgical and Phoenix Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Phoenix Holdings 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 Phoenix Holdings will offset losses from the drop in Phoenix Holdings' long position.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
| Phoenix Holdings vs. Harel Insurance Investments | Phoenix Holdings vs. Migdal Insurance | Phoenix Holdings vs. Menora Miv Hld | Phoenix Holdings vs. Israel Discount Bank |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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