Correlation Between AngioDynamics and Axogen
Can any of the company-specific risk be diversified away by investing in both AngioDynamics 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 AngioDynamics and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngioDynamics and Axogen Inc, you can compare the effects of market volatilities on AngioDynamics 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 AngioDynamics with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngioDynamics and Axogen.
Diversification Opportunities for AngioDynamics and Axogen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AngioDynamics and Axogen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and AngioDynamics 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 AngioDynamics 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 AngioDynamics i.e., AngioDynamics and Axogen go up and down completely randomly.
Pair Corralation between AngioDynamics and Axogen
Given the investment horizon of 90 days AngioDynamics is expected to generate 0.57 times more return on investment than Axogen. However, AngioDynamics is 1.74 times less risky than Axogen. It trades about 0.07 of its potential returns per unit of risk. Axogen Inc is currently generating about -0.01 per unit of risk. If you would invest 675.00 in AngioDynamics on August 28, 2024 and sell it today you would earn a total of 24.00 from holding AngioDynamics or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AngioDynamics vs. Axogen Inc
Performance |
| Timeline |
| AngioDynamics |
| Axogen Inc |
AngioDynamics and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngioDynamics and Axogen
The main advantage of trading using opposite AngioDynamics and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngioDynamics 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.| AngioDynamics vs. AptarGroup | AngioDynamics vs. Repro Med Systems | AngioDynamics vs. AtriCure | AngioDynamics vs. Akoya Biosciences |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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