Correlation Between Axogen and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Axogen and Integer Holdings 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 Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and Integer Holdings Corp, you can compare the effects of market volatilities on Axogen and Integer Holdings 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 Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Integer Holdings.
Diversification Opportunities for Axogen and Integer Holdings
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Axogen and Integer is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings Corp 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 Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Axogen i.e., Axogen and Integer Holdings go up and down completely randomly.
Pair Corralation between Axogen and Integer Holdings
Given the investment horizon of 90 days Axogen Inc is expected to generate 3.51 times more return on investment than Integer Holdings. However, Axogen is 3.51 times more volatile than Integer Holdings Corp. It trades about 0.26 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.27 per unit of risk. If you would invest 1,456 in Axogen Inc on November 7, 2024 and sell it today you would earn a total of 352.00 from holding Axogen Inc or generate 24.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axogen Inc vs. Integer Holdings Corp
Performance |
| Timeline |
| Axogen Inc |
| Integer Holdings Corp |
Axogen and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and Integer Holdings
The main advantage of trading using opposite Axogen and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, Integer Holdings 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 Integer Holdings will offset losses from the drop in Integer Holdings' long position.The idea behind Axogen Inc and Integer Holdings Corp 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.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |