Correlation Between Axonics Modulation and BioLife Solutions
Can any of the company-specific risk be diversified away by investing in both Axonics Modulation and BioLife Solutions 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 Axonics Modulation and BioLife Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axonics Modulation Technologies and BioLife Solutions, you can compare the effects of market volatilities on Axonics Modulation and BioLife Solutions 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 Axonics Modulation with a short position of BioLife Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axonics Modulation and BioLife Solutions.
Diversification Opportunities for Axonics Modulation and BioLife Solutions
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axonics and BioLife is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Axonics Modulation Technologie and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions and Axonics Modulation 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 Axonics Modulation Technologies are associated (or correlated) with BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of Axonics Modulation i.e., Axonics Modulation and BioLife Solutions go up and down completely randomly.
Pair Corralation between Axonics Modulation and BioLife Solutions
Given the investment horizon of 90 days Axonics Modulation is expected to generate 3.78 times less return on investment than BioLife Solutions. But when comparing it to its historical volatility, Axonics Modulation Technologies is 15.11 times less risky than BioLife Solutions. It trades about 0.25 of its potential returns per unit of risk. BioLife Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,379 in BioLife Solutions on September 6, 2024 and sell it today you would earn a total of 259.00 from holding BioLife Solutions or generate 10.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 79.69% |
Values | Daily Returns |
Axonics Modulation Technologie vs. BioLife Solutions
Performance |
Timeline |
Axonics Modulation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
BioLife Solutions |
Axonics Modulation and BioLife Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Axonics Modulation and BioLife Solutions
The main advantage of trading using opposite Axonics Modulation and BioLife Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axonics Modulation position performs unexpectedly, BioLife Solutions 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 BioLife Solutions will offset losses from the drop in BioLife Solutions' long position.Axonics Modulation vs. Orthofix Medical | Axonics Modulation vs. Glaukos Corp | Axonics Modulation vs. Bruker | Axonics Modulation vs. Integer Holdings Corp |
BioLife Solutions vs. Akoya Biosciences | BioLife Solutions vs. AtriCure | BioLife Solutions vs. ICU Medical | BioLife Solutions vs. Haemonetics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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