Correlation Between Aziyo Biologics and Bioventus

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

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

Diversification Opportunities for Aziyo Biologics and Bioventus

0.0

Correlation Coefficient

Aziyo Biologics  Bioventus

Pay attention - limited upside

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

Pair Corralation between Aziyo Biologics and Bioventus

If you would invest (100.00) in Aziyo Biologics on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Aziyo Biologics 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

Aziyo Biologics  vs.  Bioventus

Aziyo Biologics

Risk-Adjusted Performance

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.

Bioventus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bioventus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Aziyo Biologics and Bioventus

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

The idea behind Aziyo Biologics and Bioventus 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.