Correlation Between INTUITIVE SURGICAL and Gaming

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Gaming

-0.35

Correlation Coefficient

INTUITIVE SURGICAL  Gaming

Very good diversification

The 3 months correlation between INTUITIVE and Gaming is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Gaming and Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming and Leisure 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 Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming and Leisure has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Gaming go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Gaming

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.32 times more return on investment than Gaming. However, INTUITIVE SURGICAL is 1.32 times more volatile than Gaming and Leisure. It trades about 0.1 of its potential returns per unit of risk. Gaming and Leisure is currently generating about -0.01 per unit of risk. 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	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

INTUITIVE SURGICAL  vs.  Gaming and Leisure

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.

Gaming and Leisure

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaming and Leisure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Gaming 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 Gaming

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

The idea behind INTUITIVE SURGICAL and Gaming and Leisure 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.