Correlation Between Intuitive Surgical and Pulmatrix

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

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

Diversification Opportunities for Intuitive Surgical and Pulmatrix

0.6

Correlation Coefficient

Intuitive Surgical  Pulmatrix

Poor diversification

The 3 months correlation between Intuitive and Pulmatrix is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Surgical and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix 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 Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Intuitive Surgical i.e., Intuitive Surgical and Pulmatrix go up and down completely randomly.

Pair Corralation between Intuitive Surgical and Pulmatrix

Given the investment horizon of 90 days Intuitive Surgical is expected to generate 0.27 times more return on investment than Pulmatrix. However, Intuitive Surgical is 3.64 times less risky than Pulmatrix. It trades about -0.17 of its potential returns per unit of risk. Pulmatrix is currently generating about -0.08 per unit of risk. If you would invest  56,028  in Intuitive Surgical on May 15, 2025 and sell it today you would lose (7,794) from holding Intuitive Surgical or give up 13.91% of portfolio value over 90 days.

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

Intuitive Surgical  vs.  Pulmatrix

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.

Pulmatrix

Risk-Adjusted Performance

Weakest

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

Pair Trading with Intuitive Surgical and Pulmatrix

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

The idea behind Intuitive Surgical and Pulmatrix 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.