Correlation Between Acutus Medical and Axogen
Can any of the company-specific risk be diversified away by investing in both Acutus Medical and Axogen 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 Acutus Medical and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acutus Medical and Axogen Inc, you can compare the effects of market volatilities on Acutus Medical and Axogen 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 Acutus Medical with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acutus Medical and Axogen.
Diversification Opportunities for Acutus Medical and Axogen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acutus and Axogen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Acutus Medical and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Acutus Medical 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 Acutus Medical are associated (or correlated) with Axogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axogen Inc has no effect on the direction of Acutus Medical i.e., Acutus Medical and Axogen go up and down completely randomly.
Pair Corralation between Acutus Medical and Axogen
Given the investment horizon of 90 days Acutus Medical is expected to under-perform the Axogen. But the stock apears to be less risky and, when comparing its historical volatility, Acutus Medical is 1.39 times less risky than Axogen. The stock trades about -0.36 of its potential returns per unit of risk. The Axogen Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 859.00 in Axogen Inc on August 28, 2024 and sell it today you would earn a total of 488.00 from holding Axogen Inc or generate 56.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.24% |
| Values | Daily Returns |
Acutus Medical vs. Axogen Inc
Performance |
| Timeline |
| Acutus Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Axogen Inc |
Acutus Medical and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acutus Medical and Axogen
The main advantage of trading using opposite Acutus Medical and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acutus Medical position performs unexpectedly, Axogen 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 Axogen will offset losses from the drop in Axogen's long position.| Acutus Medical vs. STRATA Skin Sciences | Acutus Medical vs. Axogen Inc | Acutus Medical vs. Ainos Inc | Acutus Medical vs. LENSAR Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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