Correlation Between Intuitive Surgical and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Intuitive Surgical and EDAP TMS 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 EDAP TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Surgical and EDAP TMS SA, you can compare the effects of market volatilities on Intuitive Surgical and EDAP TMS 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 EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and EDAP TMS.
Diversification Opportunities for Intuitive Surgical and EDAP TMS
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intuitive and EDAP is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA 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 EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and EDAP TMS go up and down completely randomly.
Pair Corralation between Intuitive Surgical and EDAP TMS
Given the investment horizon of 90 days Intuitive Surgical is expected to under-perform the EDAP TMS. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Surgical is 4.57 times less risky than EDAP TMS. The stock trades about -0.03 of its potential returns per unit of risk. The EDAP TMS SA is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 125.00 in EDAP TMS SA on June 7, 2025 and sell it today you would earn a total of 127.00 from holding EDAP TMS SA or generate 101.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Surgical vs. EDAP TMS SA
Performance |
| Timeline |
| Intuitive Surgical |
| EDAP TMS SA |
Intuitive Surgical and EDAP TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Surgical and EDAP TMS
The main advantage of trading using opposite Intuitive Surgical and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Surgical position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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