Correlation Between BioLife Solutions and Axonics Modulation
Can any of the company-specific risk be diversified away by investing in both BioLife Solutions and Axonics Modulation 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 BioLife Solutions and Axonics Modulation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLife Solutions and Axonics Modulation Technologies, you can compare the effects of market volatilities on BioLife Solutions and Axonics Modulation 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 BioLife Solutions with a short position of Axonics Modulation. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLife Solutions and Axonics Modulation.
Diversification Opportunities for BioLife Solutions and Axonics Modulation
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BioLife and Axonics is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Solutions and Axonics Modulation Technologie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axonics Modulation and BioLife Solutions 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 BioLife Solutions are associated (or correlated) with Axonics Modulation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axonics Modulation has no effect on the direction of BioLife Solutions i.e., BioLife Solutions and Axonics Modulation go up and down completely randomly.
Pair Corralation between BioLife Solutions and Axonics Modulation
Given the investment horizon of 90 days BioLife Solutions is expected to generate 15.11 times more return on investment than Axonics Modulation. However, BioLife Solutions is 15.11 times more volatile than Axonics Modulation Technologies. It trades about 0.06 of its potential returns per unit of risk. Axonics Modulation Technologies is currently generating about 0.25 per unit of risk. 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 |
BioLife Solutions vs. Axonics Modulation Technologie
Performance |
Timeline |
BioLife Solutions |
Axonics Modulation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
BioLife Solutions and Axonics Modulation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BioLife Solutions and Axonics Modulation
The main advantage of trading using opposite BioLife Solutions and Axonics Modulation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLife Solutions position performs unexpectedly, Axonics Modulation 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 Axonics Modulation will offset losses from the drop in Axonics Modulation's long position.BioLife Solutions vs. Akoya Biosciences | BioLife Solutions vs. AtriCure | BioLife Solutions vs. ICU Medical | BioLife Solutions vs. Haemonetics |
Axonics Modulation vs. Orthofix Medical | Axonics Modulation vs. Glaukos Corp | Axonics Modulation vs. Bruker | Axonics Modulation vs. Integer Holdings Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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