Correlation Between Intuitive Surgical and Cigna Corp
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and Cigna Corp 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 Cigna Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and Cigna Corp, you can compare the effects of market volatilities on Intuitive Surgical and Cigna Corp 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 Cigna Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Cigna Corp.
Diversification Opportunities for Intuitive Surgical and Cigna Corp
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and Cigna is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Cigna Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cigna Corp 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 Cigna Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cigna Corp has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Cigna Corp go up and down completely randomly.
Pair Corralation between Intuitive Surgical and Cigna Corp
Given the investment horizon of 90 days Intuitive Surgical is expected to generate 1.01 times more return on investment than Cigna Corp. However, Intuitive Surgical is 1.01 times more volatile than Cigna Corp. It trades about 0.09 of its potential returns per unit of risk. Cigna Corp is currently generating about 0.0 per unit of risk. If you would invest 26,563 in Intuitive Surgical on September 24, 2024 and sell it today you would earn a total of 25,880 from holding Intuitive Surgical or generate 97.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intuitive Surgical vs. Cigna Corp
Performance |
Timeline |
Intuitive Surgical |
Cigna Corp |
Intuitive Surgical and Cigna Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intuitive Surgical and Cigna Corp
The main advantage of trading using opposite Intuitive Surgical and Cigna Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, Cigna Corp 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 Cigna Corp will offset losses from the drop in Cigna Corp's long position.Intuitive Surgical vs. Cigna Corp | Intuitive Surgical vs. Definitive Healthcare Corp | Intuitive Surgical vs. Guardant Health | Intuitive Surgical vs. Laboratory of |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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