Correlation Between SurModics and Standard Biotools

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

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

Diversification Opportunities for SurModics and Standard Biotools

0.66

Correlation Coefficient

SurModics  Standard Biotools

Poor diversification

The 3 months correlation between SurModics and Standard is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Standard Biotools in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Biotools and SurModics 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 SurModics are associated (or correlated) with Standard Biotools. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Biotools has no effect on the direction of SurModics i.e., SurModics and Standard Biotools go up and down completely randomly.

Pair Corralation between SurModics and Standard Biotools

Given the investment horizon of 90 days SurModics is expected to generate 2.09 times more return on investment than Standard Biotools. However, SurModics is 2.09 times more volatile than Standard Biotools. It trades about 0.14 of its potential returns per unit of risk. Standard Biotools is currently generating about 0.08 per unit of risk. If you would invest  2,991  in SurModics on September 27, 2025 and sell it today you would earn a total of  1,307  from holding SurModics or generate 43.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	70.31%
Values	Daily Returns

SurModics  vs.  Standard Biotools

SurModics

Risk-Adjusted Performance

Fair

Over the last 90 days SurModics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain fundamental indicators, SurModics showed solid returns over the last few months and may actually be approaching a breakup point.

Standard Biotools

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Standard Biotools are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Standard Biotools sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SurModics and Standard Biotools

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

The idea behind SurModics and Standard Biotools 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.