Correlation Between Capricor Therapeutics and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Capricor Therapeutics 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 Capricor Therapeutics and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capricor Therapeutics and Intuitive Surgical, you can compare the effects of market volatilities on Capricor Therapeutics 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 Capricor Therapeutics with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capricor Therapeutics and Intuitive Surgical.
Diversification Opportunities for Capricor Therapeutics and Intuitive Surgical
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capricor and Intuitive is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Capricor Therapeutics and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Capricor Therapeutics 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 Capricor Therapeutics 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 Capricor Therapeutics i.e., Capricor Therapeutics and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Capricor Therapeutics and Intuitive Surgical
Given the investment horizon of 90 days Capricor Therapeutics is expected to under-perform the Intuitive Surgical. In addition to that, Capricor Therapeutics is 2.3 times more volatile than Intuitive Surgical. It trades about -0.01 of its total potential returns per unit of risk. Intuitive Surgical is currently generating about 0.05 per unit of volatility. If you would invest 49,586 in Intuitive Surgical on July 25, 2025 and sell it today you would earn a total of 3,117 from holding Intuitive Surgical or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capricor Therapeutics vs. Intuitive Surgical
Performance |
| Timeline |
| Capricor Therapeutics |
| Intuitive Surgical |
Capricor Therapeutics and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capricor Therapeutics and Intuitive Surgical
The main advantage of trading using opposite Capricor Therapeutics and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capricor Therapeutics 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.| Capricor Therapeutics vs. AC Immune | Capricor Therapeutics vs. Vanda Pharmaceuticals | Capricor Therapeutics vs. Alector | Capricor Therapeutics vs. Mereo BioPharma Group |
| Intuitive Surgical vs. Repligen | Intuitive Surgical vs. ResMed Inc | Intuitive Surgical vs. Merit Medical Systems | Intuitive Surgical vs. ICU Medical |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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