Correlation Between INTUITIVE SURGICAL and DEXUS

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

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

Diversification Opportunities for INTUITIVE SURGICAL and DEXUS

0.42

Correlation Coefficient

INTUITIVE SURGICAL  DEXUS

Very weak diversification

The 3 months correlation between INTUITIVE and DEXUS is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and DEXUS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEXUS 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 DEXUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEXUS has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and DEXUS go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and DEXUS

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.15 times more return on investment than DEXUS. However, INTUITIVE SURGICAL is 1.15 times more volatile than DEXUS. It trades about 0.05 of its potential returns per unit of risk. DEXUS is currently generating about 0.01 per unit of risk. If you would invest  42,620  in INTUITIVE SURGICAL on April 24, 2025 and sell it today you would earn a total of  1,780  from holding INTUITIVE SURGICAL or generate 4.18% return on investment over 90 days.

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

INTUITIVE SURGICAL  vs.  DEXUS

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.

DEXUS

Risk-Adjusted Performance

Very Weak

Over the last 90 days DEXUS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, DEXUS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with INTUITIVE SURGICAL and DEXUS

The main advantage of trading using opposite INTUITIVE SURGICAL and DEXUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, DEXUS 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 DEXUS will offset losses from the drop in DEXUS's long position.

The idea behind INTUITIVE SURGICAL and DEXUS 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.