Correlation Between Ping An and INTUITIVE SURGICAL

Can any of the company-specific risk be diversified away by investing in both Ping An 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 Ping An and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ping An Healthcare and INTUITIVE SURGICAL, you can compare the effects of market volatilities on Ping An 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 Ping An with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and INTUITIVE SURGICAL.

Diversification Opportunities for Ping An and INTUITIVE SURGICAL

-0.59

Correlation Coefficient

Ping An  INTUITIVE SURGICAL

Excellent diversification

The 3 months correlation between Ping and INTUITIVE is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Healthcare and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Ping An 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 Ping An Healthcare 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 Ping An i.e., Ping An and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between Ping An and INTUITIVE SURGICAL

Assuming the 90 days horizon Ping An Healthcare is expected to generate 2.74 times more return on investment than INTUITIVE SURGICAL. However, Ping An is 2.74 times more volatile than INTUITIVE SURGICAL. It trades about 0.11 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.05 per unit of risk. If you would invest  77.00  in Ping An Healthcare on April 24, 2025 and sell it today you would earn a total of  20.00  from holding Ping An Healthcare or generate 25.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Ping An Healthcare  vs.  INTUITIVE SURGICAL

Ping An Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ping An Healthcare are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Ping An reported solid returns over the last few months and may actually be approaching a breakup point.

INTUITIVE SURGICAL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INTUITIVE SURGICAL are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, INTUITIVE SURGICAL is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Ping An and INTUITIVE SURGICAL

The main advantage of trading using opposite Ping An and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An 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 Ping An Healthcare 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.