Correlation Between Intuitive Surgical and Electrocore LLC
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Electrocore LLC 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 Electrocore LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Electrocore LLC, you can compare the effects of market volatilities on Intuitive Surgical and Electrocore LLC 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 Electrocore LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Electrocore LLC.
Diversification Opportunities for Intuitive Surgical and Electrocore LLC
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intuitive and Electrocore is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Electrocore LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrocore LLC 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 Electrocore LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrocore LLC has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Electrocore LLC go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Electrocore LLC
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 1.62 times less return on investment than Electrocore LLC. But when comparing it to its historical volatility, Intuitive Surgical is 2.61 times less risky than Electrocore LLC. It trades about 0.11 of its potential returns per unit of risk. Electrocore LLC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 313.00 in Electrocore LLC on January 25, 2024 and sell it today you would earn a total of 253.00 from holding Electrocore LLC or generate 80.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. Electrocore LLC
Performance |
| Timeline |
| Intuitive Surgical |
| Electrocore LLC |
Intuitive Surgical and Electrocore LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and Electrocore LLC
The main advantage of trading using opposite Intuitive Surgical and Electrocore LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Electrocore LLC 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 Electrocore LLC will offset losses from the drop in Electrocore LLC's long position.| Intuitive Surgical vs. HealthStream | Intuitive Surgical vs. National Research Corp | Intuitive Surgical vs. HealthEquity | Intuitive Surgical vs. Health Catalyst |
| Electrocore LLC vs. HealthStream | Electrocore LLC vs. National Research Corp | Electrocore LLC vs. HealthEquity | Electrocore LLC 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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