Correlation Between Interactive Strength and SurModics

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

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

Diversification Opportunities for Interactive Strength and SurModics

0.3

Correlation Coefficient

Interactive Strength  SurModics

Weak diversification

The 3 months correlation between Interactive and SurModics is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength Common and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Interactive Strength 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 Interactive Strength Common 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 Interactive Strength i.e., Interactive Strength and SurModics go up and down completely randomly.

Pair Corralation between Interactive Strength and SurModics

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the SurModics. But the stock apears to be less risky and, when comparing its historical volatility, Interactive Strength Common is 1.2 times less risky than SurModics. The stock trades about -0.14 of its potential returns per unit of risk. The SurModics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,690  in SurModics on August 20, 2025 and sell it today you would earn a total of  593.00  from holding SurModics or generate 16.07% return on investment over 90 days.

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

Interactive Strength Common  vs.  SurModics

Interactive Strength

Risk-Adjusted Performance

Weakest

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

SurModics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in SurModics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, SurModics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interactive Strength and SurModics

The main advantage of trading using opposite Interactive Strength and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Strength 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 Interactive Strength Common 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.