Correlation Between Axogen and Aziyo Biologics

Can any of the company-specific risk be diversified away by investing in both Axogen 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 Axogen and Aziyo Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axogen Inc and Aziyo Biologics, you can compare the effects of market volatilities on Axogen 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 Axogen with a short position of Aziyo Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Aziyo Biologics.

Diversification Opportunities for Axogen and Aziyo Biologics

0.26

Correlation Coefficient

Axogen  Aziyo Biologics

Modest diversification

The 3 months correlation between Axogen and Aziyo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Aziyo Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aziyo Biologics 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 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 Axogen i.e., Axogen and Aziyo Biologics go up and down completely randomly.

Pair Corralation between Axogen and Aziyo Biologics

If you would invest  1,315  in Axogen Inc on September 3, 2024 and sell it today you would earn a total of  75.00  from holding Axogen Inc or generate 5.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Axogen Inc  vs.  Aziyo Biologics

Axogen Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Axogen may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Aziyo Biologics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aziyo Biologics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Aziyo Biologics is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Axogen and Aziyo Biologics

The main advantage of trading using opposite Axogen and Aziyo Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen 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 Axogen 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.