Correlation Between Axogen and IRIDEX
Can any of the company-specific risk be diversified away by investing in both Axogen and IRIDEX 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 IRIDEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and IRIDEX, you can compare the effects of market volatilities on Axogen and IRIDEX 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 IRIDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and IRIDEX.
Diversification Opportunities for Axogen and IRIDEX
Very good diversification
The 3 months correlation between Axogen and IRIDEX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and IRIDEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRIDEX 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 IRIDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRIDEX has no effect on the direction of Axogen i.e., Axogen and IRIDEX go up and down completely randomly.
Pair Corralation between Axogen and IRIDEX
Given the investment horizon of 90 days Axogen Inc is expected to under-perform the IRIDEX. But the stock apears to be less risky and, when comparing its historical volatility, Axogen Inc is 1.75 times less risky than IRIDEX. The stock trades about -0.02 of its potential returns per unit of risk. The IRIDEX is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 162.00 in IRIDEX on August 27, 2024 and sell it today you would earn a total of 18.00 from holding IRIDEX or generate 11.11% 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. IRIDEX
Performance |
| Timeline |
| Axogen Inc |
| IRIDEX |
Axogen and IRIDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and IRIDEX
The main advantage of trading using opposite Axogen and IRIDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, IRIDEX 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 IRIDEX will offset losses from the drop in IRIDEX's long position.The idea behind Axogen Inc and IRIDEX 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.| IRIDEX vs. Heartbeam | IRIDEX vs. EUDA Health Holdings | IRIDEX vs. Nutex Health | IRIDEX vs. Healthcare Triangle |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |