Correlation Between Intuitive Surgical and Cimpress

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

By analyzing existing cross correlation between Intuitive Surgical and Cimpress NV, you can compare the effects of market volatilities on Intuitive Surgical and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Cimpress.

Diversification Opportunities for Intuitive Surgical and Cimpress

-0.3

Correlation Coefficient

Intuitive Surgical  Cimpress

Very good diversification

The 3 months correlation between Intuitive and Cimpress is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Cimpress go up and down completely randomly.

Pair Corralation between Intuitive Surgical and Cimpress

Given the investment horizon of 90 days Intuitive Surgical is expected to under-perform the Cimpress. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Surgical is 2.04 times less risky than Cimpress. The stock trades about -0.1 of its potential returns per unit of risk. The Cimpress NV is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  4,010  in Cimpress NV on May 3, 2025 and sell it today you would earn a total of  1,521  from holding Cimpress NV or generate 37.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intuitive Surgical  vs.  Cimpress NV

Intuitive Surgical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intuitive Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Cimpress NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cimpress NV are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Cimpress reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Surgical and Cimpress

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

The idea behind Intuitive Surgical and Cimpress NV 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.