Correlation Between INTUITIVE SURGICAL and MTY Food
Can any of the company-specific risk be diversified away by investing in both INTUITIVE SURGICAL and MTY Food 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 MTY Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTUITIVE SURGICAL and MTY Food Group, you can compare the effects of market volatilities on INTUITIVE SURGICAL and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTUITIVE SURGICAL and MTY Food.
Diversification Opportunities for INTUITIVE SURGICAL and MTY Food
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTUITIVE and MTY is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and MTY Food go up and down completely randomly.
Pair Corralation between INTUITIVE SURGICAL and MTY Food
Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.73 times more return on investment than MTY Food. However, INTUITIVE SURGICAL is 1.37 times less risky than MTY Food. It trades about 0.1 of its potential returns per unit of risk. MTY Food Group 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 Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
INTUITIVE SURGICAL vs. MTY Food Group
Performance |
Timeline |
INTUITIVE SURGICAL |
MTY Food Group |
INTUITIVE SURGICAL and MTY Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTUITIVE SURGICAL and MTY Food
The main advantage of trading using opposite INTUITIVE SURGICAL and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTUITIVE SURGICAL position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.INTUITIVE SURGICAL vs. NorAm Drilling AS | INTUITIVE SURGICAL vs. Fevertree Drinks PLC | INTUITIVE SURGICAL vs. CanSino Biologics | INTUITIVE SURGICAL vs. SHIN ETSU CHEMICAL |
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Check out your portfolio center.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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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