Correlation Between Singapore Airlines and INTUITIVE SURGICAL

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

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

Diversification Opportunities for Singapore Airlines and INTUITIVE SURGICAL

0.58

Correlation Coefficient

Singapore Airlines  INTUITIVE SURGICAL

Very weak diversification

The 3 months correlation between Singapore and INTUITIVE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Airlines Limited and INTUITIVE SURGICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTUITIVE SURGICAL and Singapore Airlines 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 Singapore Airlines Limited 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 Singapore Airlines i.e., Singapore Airlines and INTUITIVE SURGICAL go up and down completely randomly.

Pair Corralation between Singapore Airlines and INTUITIVE SURGICAL

Assuming the 90 days trading horizon Singapore Airlines Limited is expected to generate 0.65 times more return on investment than INTUITIVE SURGICAL. However, Singapore Airlines Limited is 1.53 times less risky than INTUITIVE SURGICAL. It trades about 0.23 of its potential returns per unit of risk. INTUITIVE SURGICAL is currently generating about 0.04 per unit of risk. If you would invest  418.00  in Singapore Airlines Limited on April 16, 2025 and sell it today you would earn a total of  70.00  from holding Singapore Airlines Limited or generate 16.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Singapore Airlines Limited  vs.  INTUITIVE SURGICAL

Singapore Airlines

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Singapore Airlines Limited are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Singapore Airlines reported solid returns over the last few months and may actually be approaching a breakup point.

INTUITIVE SURGICAL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in INTUITIVE SURGICAL are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, INTUITIVE SURGICAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Singapore Airlines and INTUITIVE SURGICAL

The main advantage of trading using opposite Singapore Airlines and INTUITIVE SURGICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Airlines 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 Singapore Airlines Limited 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.

Check out your portfolio center.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.