Correlation Between NexGel Warrant and Intuitive Surgical

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

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

Diversification Opportunities for NexGel Warrant and Intuitive Surgical

0.1

Correlation Coefficient

NexGel Warrant  Intuitive Surgical

Average diversification

The 3 months correlation between NexGel and Intuitive is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding NexGel Warrant and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and NexGel Warrant 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 NexGel Warrant 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 NexGel Warrant i.e., NexGel Warrant and Intuitive Surgical go up and down completely randomly.

Pair Corralation between NexGel Warrant and Intuitive Surgical

Assuming the 90 days horizon NexGel Warrant is expected to generate 10.23 times more return on investment than Intuitive Surgical. However, NexGel Warrant is 10.23 times more volatile than Intuitive Surgical. It trades about 0.04 of its potential returns per unit of risk. Intuitive Surgical is currently generating about -0.1 per unit of risk. If you would invest  40.00  in NexGel Warrant on May 4, 2025 and sell it today you would lose (6.00) from holding NexGel Warrant or give up 15.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	63.49%
Values	Daily Returns

NexGel Warrant  vs.  Intuitive Surgical

NexGel Warrant

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NexGel Warrant are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting essential indicators, NexGel Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with NexGel Warrant and Intuitive Surgical

The main advantage of trading using opposite NexGel Warrant and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NexGel Warrant 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 NexGel Warrant 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 Commodity Directory module to find actively traded commodities issued by global exchanges.