Correlation Between CHINA TONTINE and INTUITIVE SURGICAL

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

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

Diversification Opportunities for CHINA TONTINE and INTUITIVE SURGICAL

0.0

Correlation Coefficient

CHINA TONTINE  INTUITIVE SURGICAL

Pay attention - limited upside

The 3 months correlation between CHINA and INTUITIVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and CHINA TONTINE 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 CHINA TONTINE WINES 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 CHINA TONTINE i.e., CHINA TONTINE and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between CHINA TONTINE and INTUITIVE SURGICAL

If you would invest  40,420  in INTUITIVE SURGICAL on April 21, 2025 and sell it today you would earn a total of  3,880  from holding INTUITIVE SURGICAL or generate 9.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CHINA TONTINE WINES  vs.  INTUITIVE SURGICAL

CHINA TONTINE WINES

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHINA TONTINE WINES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CHINA TONTINE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

INTUITIVE SURGICAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INTUITIVE SURGICAL are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, INTUITIVE SURGICAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CHINA TONTINE and INTUITIVE SURGICAL

The main advantage of trading using opposite CHINA TONTINE and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE 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 CHINA TONTINE WINES 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.