Correlation Between Enovis Corp and Axogen
Can any of the company-specific risk be diversified away by investing in both Enovis Corp and Axogen 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 Enovis Corp and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enovis Corp and Axogen Inc, you can compare the effects of market volatilities on Enovis Corp and Axogen 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 Enovis Corp with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovis Corp and Axogen.
Diversification Opportunities for Enovis Corp and Axogen
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enovis and Axogen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Enovis Corp and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Enovis Corp 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 Enovis Corp are associated (or correlated) with Axogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axogen Inc has no effect on the direction of Enovis Corp i.e., Enovis Corp and Axogen go up and down completely randomly.
Pair Corralation between Enovis Corp and Axogen
Given the investment horizon of 90 days Enovis Corp is expected to under-perform the Axogen. But the stock apears to be less risky and, when comparing its historical volatility, Enovis Corp is 2.17 times less risky than Axogen. The stock trades about 0.0 of its potential returns per unit of risk. The Axogen Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 622.00 in Axogen Inc on August 24, 2024 and sell it today you would earn a total of 688.00 from holding Axogen Inc or generate 110.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enovis Corp vs. Axogen Inc
Performance |
| Timeline |
| Enovis Corp |
| Axogen Inc |
Enovis Corp and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enovis Corp and Axogen
The main advantage of trading using opposite Enovis Corp and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovis Corp position performs unexpectedly, Axogen 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 Axogen will offset losses from the drop in Axogen's long position.| Enovis Corp vs. Helios Technologies | Enovis Corp vs. Enpro Industries | Enovis Corp vs. Omega Flex | Enovis Corp vs. Luxfer Holdings PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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