Correlation Between INTUITIVE SURGICAL and Macys

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Macys

0.54

Correlation Coefficient

INTUITIVE SURGICAL  Macys

Very weak diversification

The 3 months correlation between INTUITIVE and Macys is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Macys go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Macys

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 26.2 times less return on investment than Macys. But when comparing it to its historical volatility, INTUITIVE SURGICAL is 1.24 times less risky than Macys. It trades about 0.01 of its potential returns per unit of risk. Macys Inc is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  922.00  in Macys Inc on April 22, 2025 and sell it today you would earn a total of  102.00  from holding Macys Inc or generate 11.06% return on investment over 90 days.

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

INTUITIVE SURGICAL  vs.  Macys Inc

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 unsteady technical and fundamental indicators, INTUITIVE SURGICAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Macys Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Macys Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Macys may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with INTUITIVE SURGICAL and Macys

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

The idea behind INTUITIVE SURGICAL and Macys Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..