Correlation Between Intuitive Surgical and Boston Scientific

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

By analyzing existing cross correlation between Intuitive Surgical and Boston Scientific Corp, you can compare the effects of market volatilities on Intuitive Surgical and Boston Scientific 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 Boston Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Surgical and Boston Scientific.

Diversification Opportunities for Intuitive Surgical and Boston Scientific

0.07

Correlation Coefficient

Intuitive Surgical  Boston Scientific

Significant diversification

The 3 months correlation between Intuitive and Boston is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Boston Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Scientific Corp 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 Boston Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Scientific Corp has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Boston Scientific go up and down completely randomly.

Pair Corralation between Intuitive Surgical and Boston Scientific

Given the investment horizon of 90 days Intuitive Surgical is expected to generate 1.71 times more return on investment than Boston Scientific. However, Intuitive Surgical is 1.71 times more volatile than Boston Scientific Corp. It trades about 0.18 of its potential returns per unit of risk. Boston Scientific Corp is currently generating about 0.0 per unit of risk. If you would invest  44,094  in Intuitive Surgical on October 7, 2025 and sell it today you would earn a total of  12,544  from holding Intuitive Surgical or generate 28.45% return on investment over 90 days.

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

Intuitive Surgical  vs.  Boston Scientific Corp

Intuitive Surgical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intuitive Surgical are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Intuitive Surgical reported solid returns over the last few months and may actually be approaching a breakup point.

Boston Scientific Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Boston Scientific Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Boston Scientific is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intuitive Surgical and Boston Scientific

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

The idea behind Intuitive Surgical and Boston Scientific 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.