Correlation Between Artivion and Axogen
Can any of the company-specific risk be diversified away by investing in both Artivion 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 Artivion and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artivion and Axogen Inc, you can compare the effects of market volatilities on Artivion 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 Artivion with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artivion and Axogen.
Diversification Opportunities for Artivion and Axogen
Good diversification
The 3 months correlation between Artivion and Axogen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Artivion and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Artivion 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 Artivion 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 Artivion i.e., Artivion and Axogen go up and down completely randomly.
Pair Corralation between Artivion and Axogen
Given the investment horizon of 90 days Artivion is expected to generate 1.16 times less return on investment than Axogen. But when comparing it to its historical volatility, Artivion is 1.91 times less risky than Axogen. It trades about 0.08 of its potential returns per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artivion vs. Axogen Inc
Performance |
| Timeline |
| Artivion |
| Axogen Inc |
Artivion and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artivion and Axogen
The main advantage of trading using opposite Artivion and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artivion 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.The idea behind Artivion and Axogen Inc 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |