Correlation Between ICU Medical and STAAR Surgical
Can any of the company-specific risk be diversified away by investing in both ICU Medical and STAAR 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 ICU Medical and STAAR Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU Medical and STAAR Surgical, you can compare the effects of market volatilities on ICU Medical and STAAR 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 ICU Medical with a short position of STAAR Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU Medical and STAAR Surgical.
Diversification Opportunities for ICU Medical and STAAR Surgical
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICU and STAAR is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and STAAR Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAAR Surgical and ICU Medical 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 ICU Medical are associated (or correlated) with STAAR Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAAR Surgical has no effect on the direction of ICU Medical i.e., ICU Medical and STAAR Surgical go up and down completely randomly.
Pair Corralation between ICU Medical and STAAR Surgical
Given the investment horizon of 90 days ICU Medical is expected to under-perform the STAAR Surgical. But the stock apears to be less risky and, when comparing its historical volatility, ICU Medical is 2.15 times less risky than STAAR Surgical. The stock trades about -0.02 of its potential returns per unit of risk. The STAAR Surgical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,827 in STAAR Surgical on July 22, 2025 and sell it today you would earn a total of 676.00 from holding STAAR Surgical or generate 37.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU Medical vs. STAAR Surgical
Performance |
| Timeline |
| ICU Medical |
| STAAR Surgical |
ICU Medical and STAAR Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU Medical and STAAR Surgical
The main advantage of trading using opposite ICU Medical and STAAR Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical position performs unexpectedly, STAAR 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 STAAR Surgical will offset losses from the drop in STAAR Surgical's long position.| ICU Medical vs. Warby Parker | ICU Medical vs. Dentsply Sirona | ICU Medical vs. LivaNova PLC | ICU Medical vs. Heartflow, Common Stock |
| STAAR Surgical vs. Pulse Biosciences | STAAR Surgical vs. Kestra Medical Technologies, | STAAR Surgical vs. Azenta Inc | STAAR Surgical vs. Anbio Biotechnology Class |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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