Correlation Between DexCom and Intuitive Surgical

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

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

Diversification Opportunities for DexCom and Intuitive Surgical

0.78

Correlation Coefficient

DexCom  Intuitive Surgical

Poor diversification

The 3 months correlation between DexCom and Intuitive is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding DexCom Inc and Intuitive Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Surgical and DexCom 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 DexCom Inc 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 DexCom i.e., DexCom and Intuitive Surgical go up and down completely randomly.

Pair Corralation between DexCom and Intuitive Surgical

Given the investment horizon of 90 days DexCom Inc is expected to under-perform the Intuitive Surgical. In addition to that, DexCom is 1.66 times more volatile than Intuitive Surgical. It trades about -0.13 of its total potential returns per unit of risk. Intuitive Surgical is currently generating about -0.14 per unit of volatility. If you would invest  52,730  in Intuitive Surgical on July 8, 2025 and sell it today you would lose (7,495) from holding Intuitive Surgical or give up 14.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

DexCom Inc  vs.  Intuitive Surgical

DexCom Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days DexCom Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Intuitive Surgical

Risk-Adjusted Performance

Weakest

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.

Pair Trading with DexCom and Intuitive Surgical

The main advantage of trading using opposite DexCom and Intuitive Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DexCom 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 DexCom Inc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.