Correlation Between Axogen and Inogen
Can any of the company-specific risk be diversified away by investing in both Axogen and Inogen 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 Inogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and Inogen Inc, you can compare the effects of market volatilities on Axogen and Inogen 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 Inogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Inogen.
Diversification Opportunities for Axogen and Inogen
Very good diversification
The 3 months correlation between Axogen and Inogen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Inogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inogen Inc 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 Inogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inogen Inc has no effect on the direction of Axogen i.e., Axogen and Inogen go up and down completely randomly.
Pair Corralation between Axogen and Inogen
Given the investment horizon of 90 days Axogen Inc is expected to generate 0.92 times more return on investment than Inogen. However, Axogen Inc is 1.08 times less risky than Inogen. It trades about 0.04 of its potential returns per unit of risk. Inogen Inc is currently generating about 0.02 per unit of risk. If you would invest 958.00 in Axogen Inc on August 31, 2024 and sell it today you would earn a total of 432.00 from holding Axogen Inc or generate 45.09% 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. Inogen Inc
Performance |
| Timeline |
| Axogen Inc |
| Inogen Inc |
Axogen and Inogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and Inogen
The main advantage of trading using opposite Axogen and Inogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, Inogen 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 Inogen will offset losses from the drop in Inogen's long position.The idea behind Axogen Inc and Inogen 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |