Correlation Between Bone Biologics and Artivion

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

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

Diversification Opportunities for Bone Biologics and Artivion

0.81

Correlation Coefficient

Bone Biologics  Artivion

Very poor diversification

The 3 months correlation between Bone and Artivion is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Bone 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 Bone Biologics Corp are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Bone Biologics i.e., Bone Biologics and Artivion go up and down completely randomly.

Pair Corralation between Bone Biologics and Artivion

Given the investment horizon of 90 days Bone Biologics Corp is expected to generate 2.51 times more return on investment than Artivion. However, Bone Biologics is 2.51 times more volatile than Artivion. It trades about -0.02 of its potential returns per unit of risk. Artivion is currently generating about -0.13 per unit of risk. If you would invest  94.00  in Bone Biologics Corp on December 28, 2024 and sell it today you would lose (12.00) from holding Bone Biologics Corp or give up 12.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Bone Biologics Corp  vs.  Artivion

Bone Biologics Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bone Biologics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Artivion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artivion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Bone Biologics and Artivion

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

The idea behind Bone Biologics Corp and Artivion 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..