Correlation Between Firan Technology and INTUITIVE SURGICAL

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

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

Diversification Opportunities for Firan Technology and INTUITIVE SURGICAL

-0.34

Correlation Coefficient

Firan Technology  INTUITIVE SURGICAL

Very good diversification

The 3 months correlation between Firan and INTUITIVE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Firan Technology 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 Firan Technology Group 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 Firan Technology i.e., Firan Technology and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between Firan Technology and INTUITIVE SURGICAL

Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.66 times more return on investment than INTUITIVE SURGICAL. However, Firan Technology is 1.66 times more volatile than INTUITIVE SURGICAL. It trades about 0.15 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.05 per unit of risk. If you would invest  540.00  in Firan Technology Group on April 24, 2025 and sell it today you would earn a total of  140.00  from holding Firan Technology Group or generate 25.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Firan Technology Group  vs.  INTUITIVE SURGICAL

Firan Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Firan Technology Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Firan Technology unveiled 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 Firan Technology and INTUITIVE SURGICAL

The main advantage of trading using opposite Firan Technology and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology 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 Firan Technology Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.