Correlation Between INTUITIVE SURGICAL and Wharf Real

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Wharf Real

-0.28

Correlation Coefficient

INTUITIVE SURGICAL  Wharf Real

Very good diversification

The 3 months correlation between INTUITIVE and Wharf is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Wharf Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wharf Real Estate 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 Wharf Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wharf Real Estate has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Wharf Real go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Wharf Real

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 5.36 times less return on investment than Wharf Real. But when comparing it to its historical volatility, INTUITIVE SURGICAL is 1.57 times less risky than Wharf Real. It trades about 0.05 of its potential returns per unit of risk. Wharf Real Estate is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  198.00  in Wharf Real Estate on April 24, 2025 and sell it today you would earn a total of  54.00  from holding Wharf Real Estate or generate 27.27% 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.  Wharf Real Estate

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.

Wharf Real Estate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wharf Real Estate are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Wharf Real reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INTUITIVE SURGICAL and Wharf Real

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

The idea behind INTUITIVE SURGICAL and Wharf Real Estate 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.