Correlation Between Phathom Pharmaceuticals and SurModics

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

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

Diversification Opportunities for Phathom Pharmaceuticals and SurModics

0.43

Correlation Coefficient

Phathom Pharmaceuticals  SurModics

Very weak diversification

The 3 months correlation between Phathom and SurModics is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Phathom Pharmaceuticals and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Phathom Pharmaceuticals 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 Phathom Pharmaceuticals are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Phathom Pharmaceuticals i.e., Phathom Pharmaceuticals and SurModics go up and down completely randomly.

Pair Corralation between Phathom Pharmaceuticals and SurModics

Given the investment horizon of 90 days Phathom Pharmaceuticals is expected to generate 5.32 times more return on investment than SurModics. However, Phathom Pharmaceuticals is 5.32 times more volatile than SurModics. It trades about 0.15 of its potential returns per unit of risk. SurModics is currently generating about 0.18 per unit of risk. If you would invest  439.00  in Phathom Pharmaceuticals on May 18, 2025 and sell it today you would earn a total of  585.00  from holding Phathom Pharmaceuticals or generate 133.26% return on investment over 90 days.

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

Phathom Pharmaceuticals  vs.  SurModics

Phathom Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Phathom Pharmaceuticals are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Phathom Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

SurModics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SurModics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, SurModics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Phathom Pharmaceuticals and SurModics

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

The idea behind Phathom Pharmaceuticals and SurModics 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.