Correlation Between Fresh Harvest and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Fresh Harvest 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 Fresh Harvest and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fresh Harvest Products and Intuitive Surgical, you can compare the effects of market volatilities on Fresh Harvest 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 Fresh Harvest with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fresh Harvest and Intuitive Surgical.
Diversification Opportunities for Fresh Harvest and Intuitive Surgical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fresh and Intuitive is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Fresh Harvest Products and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Fresh Harvest 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 Fresh Harvest Products 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 Fresh Harvest i.e., Fresh Harvest and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Fresh Harvest and Intuitive Surgical
Given the investment horizon of 90 days Fresh Harvest Products is expected to generate 13.77 times more return on investment than Intuitive Surgical. However, Fresh Harvest is 13.77 times more volatile than Intuitive Surgical. It trades about 0.21 of its potential returns per unit of risk. Intuitive Surgical is currently generating about -0.21 per unit of risk. If you would invest 52.00 in Fresh Harvest Products on January 24, 2024 and sell it today you would earn a total of 33.00 from holding Fresh Harvest Products or generate 63.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fresh Harvest Products vs. Intuitive Surgical
Performance |
Timeline |
Fresh Harvest Products |
Intuitive Surgical |
Fresh Harvest and Intuitive Surgical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fresh Harvest and Intuitive Surgical
The main advantage of trading using opposite Fresh Harvest and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fresh Harvest 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.Fresh Harvest vs. GlucoTrack | Fresh Harvest vs. Sharps Technology | Fresh Harvest vs. Utah Medical Products | Fresh Harvest vs. Innovative Eyewear |
Intuitive Surgical vs. HealthStream | Intuitive Surgical vs. National Research Corp | Intuitive Surgical vs. HealthEquity | Intuitive Surgical vs. Health Catalyst |
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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