Correlation Between Axonics Modulation and Outset Medical

Can any of the company-specific risk be diversified away by investing in both Axonics Modulation and Outset Medical 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 Outset Medical 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 Outset Medical, you can compare the effects of market volatilities on Axonics Modulation and Outset Medical 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 Outset Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axonics Modulation and Outset Medical.

Diversification Opportunities for Axonics Modulation and Outset Medical

0.0

Correlation Coefficient

Axonics Modulation  Outset Medical

Pay attention - limited upside

The 3 months correlation between Axonics and Outset is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axonics Modulation Technologie and Outset Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outset Medical 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 Outset Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outset Medical has no effect on the direction of Axonics Modulation i.e., Axonics Modulation and Outset Medical go up and down completely randomly.

Pair Corralation between Axonics Modulation and Outset Medical

If you would invest (100.00) in Axonics Modulation Technologies on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Axonics Modulation Technologies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Axonics Modulation Technologie  vs.  Outset Medical

Axonics Modulation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axonics Modulation Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Axonics Modulation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Outset Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Outset Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Axonics Modulation and Outset Medical

The main advantage of trading using opposite Axonics Modulation and Outset Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axonics Modulation position performs unexpectedly, Outset Medical 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 Outset Medical will offset losses from the drop in Outset Medical's long position.

The idea behind Axonics Modulation Technologies and Outset Medical 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.