Correlation Between Capricor Therapeutics and Intuitive Surgical

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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

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between Capricor and Intuitive is 0.27. 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 generate 3.42 times more return on investment than Intuitive Surgical. However, Capricor Therapeutics is 3.42 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 -0.13 per unit of risk. If you would invest  627.00  in Capricor Therapeutics on July 20, 2025 and sell it today you would lose (2.00) from holding Capricor Therapeutics or give up 0.32% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Capricor Therapeutics  vs.  Intuitive Surgical

 Performance 
       Timeline  
Capricor Therapeutics 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Capricor Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Capricor Therapeutics may actually be approaching a critical reversion point that can send shares even higher in November 2025.
Intuitive Surgical 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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.

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.
The idea behind Capricor Therapeutics 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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