Correlation Between Certara and Intuitive Surgical
Can any of the company-specific risk be diversified away by investing in both Certara 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 Certara and Intuitive Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Certara and Intuitive Surgical, you can compare the effects of market volatilities on Certara 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 Certara with a short position of Intuitive Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Certara and Intuitive Surgical.
Diversification Opportunities for Certara and Intuitive Surgical
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Certara and Intuitive is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Certara and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and Certara 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 Certara 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 Certara i.e., Certara and Intuitive Surgical go up and down completely randomly.
Pair Corralation between Certara and Intuitive Surgical
Given the investment horizon of 90 days Certara is expected to generate 2.25 times more return on investment than Intuitive Surgical. However, Certara is 2.25 times more volatile than Intuitive Surgical. It trades about -0.02 of its potential returns per unit of risk. Intuitive Surgical is currently generating about -0.13 per unit of risk. If you would invest 1,118 in Certara on June 12, 2025 and sell it today you would lose (76.00) from holding Certara or give up 6.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Certara vs. Intuitive Surgical
Performance |
| Timeline |
| Certara |
| Intuitive Surgical |
Certara and Intuitive Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Certara and Intuitive Surgical
The main advantage of trading using opposite Certara and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Certara 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.| Certara vs. Definitive Healthcare Corp | Certara vs. National Research Corp | Certara vs. Evolent Health | Certara vs. Simulations Plus |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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