Correlation Between INTUITIVE SURGICAL and AUREA SA

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

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

Diversification Opportunities for INTUITIVE SURGICAL and AUREA SA

0.0

Correlation Coefficient

INTUITIVE SURGICAL  AUREA SA

Pay attention - limited upside

The 3 months correlation between INTUITIVE and AUREA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and AUREA SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUREA SA INH 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 AUREA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUREA SA INH has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and AUREA SA go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and AUREA SA

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 3.0 times less return on investment than AUREA SA. But when comparing it to its historical volatility, INTUITIVE SURGICAL is 1.21 times less risky than AUREA SA. It trades about 0.05 of its potential returns per unit of risk. AUREA SA INH is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  502.00  in AUREA SA INH on April 24, 2025 and sell it today you would earn a total of  72.00  from holding AUREA SA INH or generate 14.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

INTUITIVE SURGICAL  vs.  AUREA SA INH

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.

AUREA SA INH

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AUREA SA INH are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, AUREA SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INTUITIVE SURGICAL and AUREA SA

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

The idea behind INTUITIVE SURGICAL and AUREA SA INH 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.