Correlation Between Intuitive Surgical and HOYA

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

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

Diversification Opportunities for Intuitive Surgical and HOYA

0.63

Correlation Coefficient

Intuitive Surgical  HOYA

Poor diversification

The 3 months correlation between Intuitive and HOYA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and HOYA go up and down completely randomly.

Pair Corralation between Intuitive Surgical and HOYA

Assuming the 90 days trading horizon Intuitive Surgical is expected to under-perform the HOYA. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Surgical is 1.14 times less risky than HOYA. The stock trades about -0.02 of its potential returns per unit of risk. The HOYA Corporation is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  9,896  in HOYA Corporation on April 24, 2025 and sell it today you would earn a total of  554.00  from holding HOYA Corporation or generate 5.6% 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.  HOYA Corp.

Intuitive Surgical

Risk-Adjusted Performance

Very Weak

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

HOYA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HOYA Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, HOYA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Intuitive Surgical and HOYA

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

The idea behind Intuitive Surgical and HOYA Corporation 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.