Correlation Between PEPKOR and INTUITIVE SURGICAL

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Can any of the company-specific risk be diversified away by investing in both PEPKOR and INTUITIVE SURGICAL 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 PEPKOR and INTUITIVE SURGICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPKOR LTD and INTUITIVE SURGICAL, you can compare the effects of market volatilities on PEPKOR and INTUITIVE SURGICAL 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 PEPKOR with a short position of INTUITIVE SURGICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPKOR and INTUITIVE SURGICAL.

Diversification Opportunities for PEPKOR and INTUITIVE SURGICAL

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between PEPKOR and INTUITIVE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding PEPKOR LTD and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and PEPKOR 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 PEPKOR LTD are associated (or correlated) with INTUITIVE SURGICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTUITIVE SURGICAL has no effect on the direction of PEPKOR i.e., PEPKOR and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between PEPKOR and INTUITIVE SURGICAL

Assuming the 90 days trading horizon PEPKOR is expected to generate 1.0 times less return on investment than INTUITIVE SURGICAL. In addition to that, PEPKOR is 1.1 times more volatile than INTUITIVE SURGICAL. It trades about 0.06 of its total potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.07 per unit of volatility. If you would invest  41,600  in INTUITIVE SURGICAL on April 23, 2025 and sell it today you would earn a total of  2,490  from holding INTUITIVE SURGICAL or generate 5.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

PEPKOR LTD  vs.  INTUITIVE SURGICAL

 Performance 
       Timeline  
PEPKOR LTD 

Risk-Adjusted Performance

Insignificant

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

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in INTUITIVE SURGICAL are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, INTUITIVE SURGICAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

PEPKOR and INTUITIVE SURGICAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PEPKOR and INTUITIVE SURGICAL

The main advantage of trading using opposite PEPKOR and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPKOR position performs unexpectedly, INTUITIVE SURGICAL 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 INTUITIVE SURGICAL will offset losses from the drop in INTUITIVE SURGICAL's long position.
The idea behind PEPKOR LTD and INTUITIVE SURGICAL 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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