Correlation Between LeMaitre Vascular and Axogen
Can any of the company-specific risk be diversified away by investing in both LeMaitre Vascular 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 LeMaitre Vascular and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LeMaitre Vascular and Axogen Inc, you can compare the effects of market volatilities on LeMaitre Vascular 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 LeMaitre Vascular with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of LeMaitre Vascular and Axogen.
Diversification Opportunities for LeMaitre Vascular and Axogen
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between LeMaitre and Axogen is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding LeMaitre Vascular and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and LeMaitre Vascular 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 LeMaitre Vascular 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 LeMaitre Vascular i.e., LeMaitre Vascular and Axogen go up and down completely randomly.
Pair Corralation between LeMaitre Vascular and Axogen
Given the investment horizon of 90 days LeMaitre Vascular is expected to generate 0.47 times more return on investment than Axogen. However, LeMaitre Vascular is 2.13 times less risky than Axogen. It trades about 0.41 of its potential returns per unit of risk. Axogen Inc is currently generating about 0.02 per unit of risk. If you would invest 8,684 in LeMaitre Vascular on August 24, 2024 and sell it today you would earn a total of 1,903 from holding LeMaitre Vascular or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LeMaitre Vascular vs. Axogen Inc
Performance |
| Timeline |
| LeMaitre Vascular |
| Axogen Inc |
LeMaitre Vascular and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LeMaitre Vascular and Axogen
The main advantage of trading using opposite LeMaitre Vascular and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LeMaitre Vascular 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.| LeMaitre Vascular vs. InfuSystems Holdings | LeMaitre Vascular vs. Pro Dex | LeMaitre Vascular vs. Utah Medical Products | LeMaitre Vascular vs. Milestone Scientific |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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