Correlation Between Axogen and Vapotherm
Can any of the company-specific risk be diversified away by investing in both Axogen and Vapotherm 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 Vapotherm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axogen Inc and Vapotherm, you can compare the effects of market volatilities on Axogen and Vapotherm 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 Vapotherm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Vapotherm.
Diversification Opportunities for Axogen and Vapotherm
Pay attention - limited upside
The 3 months correlation between Axogen and Vapotherm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Vapotherm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vapotherm 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 Vapotherm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vapotherm has no effect on the direction of Axogen i.e., Axogen and Vapotherm go up and down completely randomly.
Pair Corralation between Axogen and Vapotherm
If you would invest 799.00 in Axogen Inc on November 9, 2024 and sell it today you would earn a total of 1,034 from holding Axogen Inc or generate 129.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Axogen Inc vs. Vapotherm
Performance |
| Timeline |
| Axogen Inc |
| Vapotherm |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Axogen and Vapotherm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axogen and Vapotherm
The main advantage of trading using opposite Axogen and Vapotherm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, Vapotherm 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 Vapotherm will offset losses from the drop in Vapotherm's long position.The idea behind Axogen Inc and Vapotherm 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.| Vapotherm vs. Sight Sciences | Vapotherm vs. STRATA Skin Sciences | Vapotherm vs. Neuropace | Vapotherm vs. Nexalin Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |