Correlation Between TRI Pointe and Intuitive Surgical

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

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

Diversification Opportunities for TRI Pointe and Intuitive Surgical

-0.45

Correlation Coefficient

TRI Pointe  Intuitive Surgical

Very good diversification

The 3 months correlation between TRI and Intuitive is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding TRI Pointe Homes and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and TRI Pointe 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 TRI Pointe Homes 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 TRI Pointe i.e., TRI Pointe and Intuitive Surgical go up and down completely randomly.

Pair Corralation between TRI Pointe and Intuitive Surgical

Considering the 90-day investment horizon TRI Pointe Homes is expected to generate 1.61 times more return on investment than Intuitive Surgical. However, TRI Pointe is 1.61 times more volatile than Intuitive Surgical. It trades about 0.03 of its potential returns per unit of risk. Intuitive Surgical is currently generating about -0.22 per unit of risk. If you would invest  3,298  in TRI Pointe Homes on July 3, 2025 and sell it today you would earn a total of  101.00  from holding TRI Pointe Homes or generate 3.06% return on investment over 90 days.

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

TRI Pointe Homes  vs.  Intuitive Surgical

TRI Pointe Homes

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TRI Pointe Homes are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, TRI Pointe is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Intuitive Surgical

Risk-Adjusted Performance

Weakest

Over the last 90 days Intuitive Surgical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with TRI Pointe and Intuitive Surgical

The main advantage of trading using opposite TRI Pointe and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRI Pointe 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 TRI Pointe Homes 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.