Correlation Between Axogen and Sight Sciences
Can any of the company-specific risk be diversified away by investing in both Axogen and Sight Sciences 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 Sight Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and Sight Sciences, you can compare the effects of market volatilities on Axogen and Sight Sciences 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 Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Sight Sciences.
Diversification Opportunities for Axogen and Sight Sciences
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axogen and Sight is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight Sciences 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 Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Axogen i.e., Axogen and Sight Sciences go up and down completely randomly.
Pair Corralation between Axogen and Sight Sciences
Given the investment horizon of 90 days Axogen Inc is expected to generate 1.33 times more return on investment than Sight Sciences. However, Axogen is 1.33 times more volatile than Sight Sciences. It trades about 0.26 of its potential returns per unit of risk. Sight Sciences is currently generating about -0.28 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 Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Axogen Inc vs. Sight Sciences
Performance |
| Timeline |
| Axogen Inc |
| Sight Sciences |
Axogen and Sight Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and Sight Sciences
The main advantage of trading using opposite Axogen and Sight Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, Sight Sciences 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 Sight Sciences will offset losses from the drop in Sight Sciences' long position.The idea behind Axogen Inc and Sight Sciences 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.| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |