Correlation Between Procept Biorobotics and SurModics

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

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

Diversification Opportunities for Procept Biorobotics and SurModics

0.9

Correlation Coefficient

Procept Biorobotics  SurModics

Almost no diversification

The 3 months correlation between Procept and SurModics is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Procept Biorobotics Corp and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Procept Biorobotics 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 Procept Biorobotics Corp are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Procept Biorobotics i.e., Procept Biorobotics and SurModics go up and down completely randomly.

Pair Corralation between Procept Biorobotics and SurModics

Given the investment horizon of 90 days Procept Biorobotics Corp is expected to under-perform the SurModics. In addition to that, Procept Biorobotics is 1.42 times more volatile than SurModics. It trades about -0.13 of its total potential returns per unit of risk. SurModics is currently generating about -0.16 per unit of volatility. If you would invest  3,963  in SurModics on December 30, 2024 and sell it today you would lose (888.00) from holding SurModics or give up 22.41% of portfolio value over 90 days.

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

Procept Biorobotics Corp  vs.  SurModics

Procept Biorobotics Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Procept Biorobotics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SurModics

Risk-Adjusted Performance

Very Weak

Over the last 90 days SurModics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Procept Biorobotics and SurModics

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

The idea behind Procept Biorobotics Corp and SurModics 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.