Correlation Between Shopify and Intuitive Surgical

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

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

Diversification Opportunities for Shopify and Intuitive Surgical

0.24

Correlation Coefficient

Shopify  Intuitive Surgical

Modest diversification

The 3 months correlation between Shopify and Intuitive is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shopify and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Shopify 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 Shopify 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 Shopify i.e., Shopify and Intuitive Surgical go up and down completely randomly.

Pair Corralation between Shopify and Intuitive Surgical

Assuming the 90 days horizon Shopify is expected to generate 1.82 times more return on investment than Intuitive Surgical. However, Shopify is 1.82 times more volatile than Intuitive Surgical. It trades about 0.2 of its potential returns per unit of risk. Intuitive Surgical is currently generating about 0.07 per unit of risk. If you would invest  7,513  in Shopify on April 21, 2025 and sell it today you would earn a total of  3,359  from holding Shopify or generate 44.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Shopify  vs.  Intuitive Surgical

Shopify

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Shopify are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Shopify reported solid returns over the last few months and may actually be approaching a breakup point.

Intuitive Surgical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Surgical are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Intuitive Surgical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Shopify and Intuitive Surgical

The main advantage of trading using opposite Shopify and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shopify 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 Shopify 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.