Correlation Between Intuitive Surgical and Axogen

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

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

Diversification Opportunities for Intuitive Surgical and Axogen

-0.62

Correlation Coefficient

Intuitive Surgical  Axogen

Excellent diversification

The 3 months correlation between Intuitive and Axogen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Intuitive Surgical 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 Intuitive Surgical are associated (or correlated) with Axogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axogen Inc has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Axogen go up and down completely randomly.

Pair Corralation between Intuitive Surgical and Axogen

Given the investment horizon of 90 days Intuitive Surgical is expected to under-perform the Axogen. But the stock apears to be less risky and, when comparing its historical volatility, Intuitive Surgical is 2.14 times less risky than Axogen. The stock trades about -0.18 of its potential returns per unit of risk. The Axogen Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,176  in Axogen Inc on May 18, 2025 and sell it today you would earn a total of  317.00  from holding Axogen Inc or generate 26.96% return on investment over 90 days.

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

Intuitive Surgical  vs.  Axogen Inc

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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Axogen Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Axogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intuitive Surgical and Axogen

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

The idea behind Intuitive Surgical and Axogen Inc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.