Correlation Between Axogen and SurModics
Can any of the company-specific risk be diversified away by investing in both Axogen and SurModics 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 SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and SurModics, you can compare the effects of market volatilities on Axogen and SurModics 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 SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and SurModics.
Diversification Opportunities for Axogen and SurModics
Very good diversification
The 3 months correlation between Axogen and SurModics is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics 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 SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Axogen i.e., Axogen and SurModics go up and down completely randomly.
Pair Corralation between Axogen and SurModics
Given the investment horizon of 90 days Axogen is expected to generate 1.11 times less return on investment than SurModics. In addition to that, Axogen is 5.78 times more volatile than SurModics. It trades about 0.02 of its total potential returns per unit of risk. SurModics is currently generating about 0.13 per unit of volatility. If you would invest 3,828 in SurModics on August 24, 2024 and sell it today you would earn a total of 91.00 from holding SurModics or generate 2.38% 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. SurModics
Performance |
| Timeline |
| Axogen Inc |
| SurModics |
Axogen and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and SurModics
The main advantage of trading using opposite Axogen and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.The idea behind Axogen Inc and SurModics 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.| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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