Correlation Between Sartorius Aktiengesellscha and Intuitive Surgical

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Can any of the company-specific risk be diversified away by investing in both Sartorius Aktiengesellscha 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 Sartorius Aktiengesellscha and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sartorius Aktiengesellschaft and Intuitive Surgical, you can compare the effects of market volatilities on Sartorius Aktiengesellscha 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 Sartorius Aktiengesellscha with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Aktiengesellscha and Intuitive Surgical.

Diversification Opportunities for Sartorius Aktiengesellscha and Intuitive Surgical

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Sartorius and Intuitive is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Aktiengesellschaft and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Sartorius Aktiengesellscha 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 Sartorius Aktiengesellschaft 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 Sartorius Aktiengesellscha i.e., Sartorius Aktiengesellscha and Intuitive Surgical go up and down completely randomly.

Pair Corralation between Sartorius Aktiengesellscha and Intuitive Surgical

Assuming the 90 days horizon Sartorius Aktiengesellschaft is expected to generate 1.1 times more return on investment than Intuitive Surgical. However, Sartorius Aktiengesellscha is 1.1 times more volatile than Intuitive Surgical. It trades about 0.17 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.1 per unit of risk. If you would invest  7,472  in Sartorius Aktiengesellschaft on December 29, 2023 and sell it today you would earn a total of  500.00  from holding Sartorius Aktiengesellschaft or generate 6.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Sartorius Aktiengesellschaft  vs.  Intuitive Surgical

 Performance 
       Timeline  
Sartorius Aktiengesellscha 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Sartorius Aktiengesellschaft are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Sartorius Aktiengesellscha may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Intuitive Surgical 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Surgical are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Intuitive Surgical reported solid returns over the last few months and may actually be approaching a breakup point.

Sartorius Aktiengesellscha and Intuitive Surgical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sartorius Aktiengesellscha and Intuitive Surgical

The main advantage of trading using opposite Sartorius Aktiengesellscha and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sartorius Aktiengesellscha 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.
The idea behind Sartorius Aktiengesellschaft and Intuitive Surgical pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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