Correlation Between INTUITIVE SURGICAL and Jerónimo Martins

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

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

Diversification Opportunities for INTUITIVE SURGICAL and Jerónimo Martins

0.03

Correlation Coefficient

INTUITIVE SURGICAL  Jerónimo Martins

Significant diversification

The 3 months correlation between INTUITIVE and Jerónimo is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding INTUITIVE SURGICAL and Jernimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jernimo Martins SGPS 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 Jerónimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jernimo Martins SGPS has no effect on the direction of INTUITIVE SURGICAL i.e., INTUITIVE SURGICAL and Jerónimo Martins go up and down completely randomly.

Pair Corralation between INTUITIVE SURGICAL and Jerónimo Martins

Assuming the 90 days trading horizon INTUITIVE SURGICAL is expected to generate 1.17 times more return on investment than Jerónimo Martins. However, INTUITIVE SURGICAL is 1.17 times more volatile than Jernimo Martins SGPS. It trades about 0.1 of its potential returns per unit of risk. Jernimo Martins SGPS is currently generating about 0.07 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

INTUITIVE SURGICAL  vs.  Jernimo Martins SGPS

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.

Jernimo Martins SGPS

Risk-Adjusted Performance

Modest

Over the last 90 days Jernimo Martins SGPS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Jerónimo Martins is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with INTUITIVE SURGICAL and Jerónimo Martins

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

The idea behind INTUITIVE SURGICAL and Jernimo Martins SGPS 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.