Correlation Between INTUITIVE SURGICAL and Axfood AB

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Axfood AB

0.08

Correlation Coefficient

INTUITIVE SURGICAL  Axfood AB

Significant diversification

The 3 months correlation between INTUITIVE and Axfood is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB 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 Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Axfood AB go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Axfood AB

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to under-perform the Axfood AB. But the stock apears to be less risky and, when comparing its historical volatility, INTUITIVE SURGICAL is 1.23 times less risky than Axfood AB. The stock trades about -0.02 of its potential returns per unit of risk. The Axfood AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,294  in Axfood AB on April 25, 2025 and sell it today you would earn a total of  205.00  from holding Axfood AB or generate 8.94% return on investment over 90 days.

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

INTUITIVE SURGICAL  vs.  Axfood AB

INTUITIVE SURGICAL

Risk-Adjusted Performance

Weak

Over the last 90 days INTUITIVE SURGICAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, INTUITIVE SURGICAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Axfood AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Axfood AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, Axfood AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with INTUITIVE SURGICAL and Axfood AB

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

The idea behind INTUITIVE SURGICAL and Axfood AB 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 Valuation module to check real value of public entities based on technical and fundamental data.