Correlation Between SenesTech and SurModics

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

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

Diversification Opportunities for SenesTech and SurModics

0.69

Correlation Coefficient

SenesTech  SurModics

Poor diversification

The 3 months correlation between SenesTech and SurModics is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SenesTech and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and SenesTech 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 SenesTech 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 SenesTech i.e., SenesTech and SurModics go up and down completely randomly.

Pair Corralation between SenesTech and SurModics

Given the investment horizon of 90 days SenesTech is expected to generate 3.43 times more return on investment than SurModics. However, SenesTech is 3.43 times more volatile than SurModics. It trades about 0.15 of its potential returns per unit of risk. SurModics is currently generating about 0.21 per unit of risk. If you would invest  278.00  in SenesTech on May 10, 2025 and sell it today you would earn a total of  191.00  from holding SenesTech or generate 68.71% return on investment over 90 days.

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

SenesTech  vs.  SurModics

SenesTech

Risk-Adjusted Performance

Good

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

SurModics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SurModics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, SurModics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SenesTech and SurModics

The main advantage of trading using opposite SenesTech and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SenesTech 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 SenesTech 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.