Correlation Between Axogen and Accuray Incorporated
Can any of the company-specific risk be diversified away by investing in both Axogen and Accuray Incorporated 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 Accuray Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and Accuray Incorporated, you can compare the effects of market volatilities on Axogen and Accuray Incorporated 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 Accuray Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Accuray Incorporated.
Diversification Opportunities for Axogen and Accuray Incorporated
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axogen and Accuray is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Accuray Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accuray Incorporated 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 Accuray Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accuray Incorporated has no effect on the direction of Axogen i.e., Axogen and Accuray Incorporated go up and down completely randomly.
Pair Corralation between Axogen and Accuray Incorporated
Given the investment horizon of 90 days Axogen is expected to generate 2.96 times less return on investment than Accuray Incorporated. In addition to that, Axogen is 1.05 times more volatile than Accuray Incorporated. It trades about 0.04 of its total potential returns per unit of risk. Accuray Incorporated is currently generating about 0.12 per unit of volatility. If you would invest 175.00 in Accuray Incorporated on August 24, 2024 and sell it today you would earn a total of 18.00 from holding Accuray Incorporated or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axogen Inc vs. Accuray Incorporated
Performance |
| Timeline |
| Axogen Inc |
| Accuray Incorporated |
Axogen and Accuray Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and Accuray Incorporated
The main advantage of trading using opposite Axogen and Accuray Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, Accuray Incorporated 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 Accuray Incorporated will offset losses from the drop in Accuray Incorporated's long position.The idea behind Axogen Inc and Accuray Incorporated 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.| Accuray Incorporated vs. SurModics | Accuray Incorporated vs. Axogen Inc | Accuray Incorporated vs. Bioventus | Accuray Incorporated vs. Cutera 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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