Correlation Between SurModics and Mesa Laboratories

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

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

Diversification Opportunities for SurModics and Mesa Laboratories

-0.76

Correlation Coefficient

SurModics  Mesa Laboratories

Pay attention - limited upside

The 3 months correlation between SurModics and Mesa is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding SurModics and Mesa Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Laboratories 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 Mesa Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Laboratories has no effect on the direction of SurModics i.e., SurModics and Mesa Laboratories go up and down completely randomly.

Pair Corralation between SurModics and Mesa Laboratories

Given the investment horizon of 90 days SurModics is expected to generate 0.66 times more return on investment than Mesa Laboratories. However, SurModics is 1.51 times less risky than Mesa Laboratories. It trades about 0.22 of its potential returns per unit of risk. Mesa Laboratories is currently generating about -0.21 per unit of risk. If you would invest  2,697  in SurModics on May 5, 2025 and sell it today you would earn a total of  906.00  from holding SurModics or generate 33.59% return on investment over 90 days.

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

SurModics  vs.  Mesa Laboratories

SurModics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SurModics are ranked lower than 17 (%) 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.

Mesa Laboratories

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mesa Laboratories has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with SurModics and Mesa Laboratories

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

The idea behind SurModics and Mesa Laboratories 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.