Correlation Between INTUITIVE SURGICAL and Fanuc

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Fanuc

0.79

Correlation Coefficient

INTUITIVE SURGICAL  Fanuc

Poor diversification

The 3 months correlation between INTUITIVE and Fanuc is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Fanuc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fanuc 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 Fanuc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fanuc has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Fanuc go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Fanuc

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 0.88 times more return on investment than Fanuc. However, INTUITIVE SURGICAL is 1.14 times less risky than Fanuc. It trades about 0.1 of its potential returns per unit of risk. Fanuc is currently generating about 0.02 per unit of risk. If you would invest  40,420  in INTUITIVE SURGICAL on April 22, 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.  Fanuc

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.

Fanuc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fanuc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Fanuc is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with INTUITIVE SURGICAL and Fanuc

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

The idea behind INTUITIVE SURGICAL and Fanuc 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.