Correlation Between Cutera and Aziyo Biologics
Can any of the company-specific risk be diversified away by investing in both Cutera and Aziyo Biologics 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 Cutera and Aziyo Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cutera Inc and Aziyo Biologics, you can compare the effects of market volatilities on Cutera and Aziyo Biologics 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 Cutera with a short position of Aziyo Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cutera and Aziyo Biologics.
Diversification Opportunities for Cutera and Aziyo Biologics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cutera and Aziyo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cutera Inc and Aziyo Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aziyo Biologics and Cutera 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 Cutera Inc are associated (or correlated) with Aziyo Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aziyo Biologics has no effect on the direction of Cutera i.e., Cutera and Aziyo Biologics go up and down completely randomly.
Pair Corralation between Cutera and Aziyo Biologics
If you would invest 244.00 in Aziyo Biologics on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Aziyo Biologics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cutera Inc vs. Aziyo Biologics
Performance |
| Timeline |
| Cutera Inc |
| Aziyo Biologics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cutera and Aziyo Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cutera and Aziyo Biologics
The main advantage of trading using opposite Cutera and Aziyo Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cutera position performs unexpectedly, Aziyo Biologics 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 Aziyo Biologics will offset losses from the drop in Aziyo Biologics' long position.The idea behind Cutera Inc and Aziyo Biologics 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.| Aziyo Biologics vs. Ainos Inc | Aziyo Biologics vs. SurModics | Aziyo Biologics vs. LENSAR Inc | Aziyo Biologics vs. IRIDEX |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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