Correlation Between Globus Medical and Pulmonx Corp

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

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

Diversification Opportunities for Globus Medical and Pulmonx Corp

0.51

Correlation Coefficient

Globus Medical  Pulmonx Corp

Very weak diversification

The 3 months correlation between Globus and Pulmonx is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical and Pulmonx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmonx Corp and Globus 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 Globus Medical are associated (or correlated) with Pulmonx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmonx Corp has no effect on the direction of Globus Medical i.e., Globus Medical and Pulmonx Corp go up and down completely randomly.

Pair Corralation between Globus Medical and Pulmonx Corp

Given the investment horizon of 90 days Globus Medical is expected to generate 0.47 times more return on investment than Pulmonx Corp. However, Globus Medical is 2.11 times less risky than Pulmonx Corp. It trades about -0.12 of its potential returns per unit of risk. Pulmonx Corp is currently generating about -0.13 per unit of risk. If you would invest  7,246  in Globus Medical on May 8, 2025 and sell it today you would lose (1,883) from holding Globus Medical or give up 25.99% of portfolio value over 90 days.

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

Globus Medical  vs.  Pulmonx Corp

Globus Medical

Risk-Adjusted Performance

Weakest

Over the last 90 days Globus Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pulmonx Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Pulmonx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Globus Medical and Pulmonx Corp

The main advantage of trading using opposite Globus Medical and Pulmonx Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Medical position performs unexpectedly, Pulmonx Corp 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 Pulmonx Corp will offset losses from the drop in Pulmonx Corp's long position.

The idea behind Globus Medical and Pulmonx Corp 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.