Correlation Between SARTORIUS and Intuitive Surgical

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

By analyzing existing cross correlation between SARTORIUS AG UNSPADR and Intuitive Surgical, you can compare the effects of market volatilities on SARTORIUS 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 SARTORIUS with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SARTORIUS and Intuitive Surgical.

Diversification Opportunities for SARTORIUS and Intuitive Surgical

0.36

Correlation Coefficient

SARTORIUS  Intuitive Surgical

Weak diversification

The 3 months correlation between SARTORIUS and Intuitive is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SARTORIUS AG UNSPADR and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and SARTORIUS 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 SARTORIUS AG UNSPADR 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 SARTORIUS i.e., SARTORIUS and Intuitive Surgical go up and down completely randomly.

Pair Corralation between SARTORIUS and Intuitive Surgical

Assuming the 90 days trading horizon SARTORIUS AG UNSPADR is expected to under-perform the Intuitive Surgical. In addition to that, SARTORIUS is 1.15 times more volatile than Intuitive Surgical. It trades about -0.01 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  41,565  in Intuitive Surgical on April 21, 2025 and sell it today you would earn a total of  2,645  from holding Intuitive Surgical or generate 6.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SARTORIUS AG UNSPADR  vs.  Intuitive Surgical

SARTORIUS AG UNSPADR

Risk-Adjusted Performance

Very Weak

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

Intuitive Surgical

Risk-Adjusted Performance

Modest

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. Despite nearly fragile forward indicators, Intuitive Surgical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with SARTORIUS and Intuitive Surgical

The main advantage of trading using opposite SARTORIUS and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SARTORIUS 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 SARTORIUS AG UNSPADR 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.