Correlation Between SurModics and Motus GI

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

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

Diversification Opportunities for SurModics and Motus GI

-0.44

Correlation Coefficient

SurModics  Motus GI

Very good diversification

The 3 months correlation between SurModics and Motus is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Motus GI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motus GI Holdings and SurModics 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 SurModics are associated (or correlated) with Motus GI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motus GI Holdings has no effect on the direction of SurModics i.e., SurModics and Motus GI go up and down completely randomly.

Pair Corralation between SurModics and Motus GI

If you would invest  3,933  in SurModics on September 23, 2024 and sell it today you would earn a total of  42.00  from holding SurModics or generate 1.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

SurModics  vs.  Motus GI Holdings

SurModics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SurModics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, SurModics is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Motus GI Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Motus GI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Motus GI is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SurModics and Motus GI

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

The idea behind SurModics and Motus GI Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.