Correlation Between Stereotaxis and Intuitive Surg

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

Diversification Opportunities for Stereotaxis and Intuitive Surg

0.78
  Correlation Coefficient

Poor diversification

The 2 months correlation between Stereotaxis and Intuitive is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Stereotaxis and Intuitive Surg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surg and Stereotaxis 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 Stereotaxis are associated (or correlated) with Intuitive Surg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Surg has no effect on the direction of Stereotaxis i.e., Stereotaxis and Intuitive Surg go up and down completely randomly.

Pair Corralation between Stereotaxis and Intuitive Surg

Given the investment horizon of 90 days Stereotaxis is expected to under-perform the Intuitive Surg. In addition to that, Stereotaxis is 1.77 times more volatile than Intuitive Surg. It trades about -0.14 of its total potential returns per unit of risk. Intuitive Surg is currently generating about -0.14 per unit of volatility. If you would invest  25,512  in Intuitive Surg on March 26, 2022 and sell it today you would lose (4,545)  from holding Intuitive Surg or give up 17.82% of portfolio value over 90 days.
Time Period2 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Stereotaxis  vs.  Intuitive Surg

 Performance (%) 
      Timeline 
Stereotaxis 
Stereotaxis Performance
0 of 100
Over the last 90 days Stereotaxis has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in July 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Structure and Payout Changes

Last Split Factor
1096:1000
Last Split Date
2013-11-04

Stereotaxis Price Channel

Intuitive Surg 
Intuitive Performance
0 of 100
Over the last 90 days Intuitive Surg has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Intuitive Price Channel

Stereotaxis and Intuitive Surg Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Stereotaxis and Intuitive Surg

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

Stereotaxis

Pair trading matchups for Stereotaxis

The idea behind Stereotaxis and Intuitive Surg 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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