Correlation Between Axogen and Artivion
Can any of the company-specific risk be diversified away by investing in both Axogen and Artivion 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 Axogen and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and Artivion, you can compare the effects of market volatilities on Axogen and Artivion 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 Axogen with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Artivion.
Diversification Opportunities for Axogen and Artivion
Poor diversification
The 3 months correlation between Axogen and Artivion is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Axogen 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 Axogen Inc are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Axogen i.e., Axogen and Artivion go up and down completely randomly.
Pair Corralation between Axogen and Artivion
Given the investment horizon of 90 days Axogen Inc is expected to generate 2.06 times more return on investment than Artivion. However, Axogen is 2.06 times more volatile than Artivion. It trades about 0.1 of its potential returns per unit of risk. Artivion is currently generating about 0.11 per unit of risk. If you would invest 795.00 in Axogen Inc on November 9, 2024 and sell it today you would earn a total of 1,038 from holding Axogen Inc or generate 130.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axogen Inc vs. Artivion
Performance |
| Timeline |
| Axogen Inc |
| Artivion |
Axogen and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and Artivion
The main advantage of trading using opposite Axogen and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.The idea behind Axogen Inc and Artivion 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.| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |