Correlation Between DarioHealth Corp and Axogen

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

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

Diversification Opportunities for DarioHealth Corp and Axogen

-0.37

Correlation Coefficient

DarioHealth Corp  Axogen

Very good diversification

The 3 months correlation between DarioHealth and Axogen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DarioHealth Corp and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and DarioHealth Corp 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 DarioHealth Corp are associated (or correlated) with Axogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axogen Inc has no effect on the direction of DarioHealth Corp i.e., DarioHealth Corp and Axogen go up and down completely randomly.

Pair Corralation between DarioHealth Corp and Axogen

Given the investment horizon of 90 days DarioHealth Corp is expected to under-perform the Axogen. In addition to that, DarioHealth Corp is 1.55 times more volatile than Axogen Inc. It trades about -0.03 of its total potential returns per unit of risk. Axogen Inc is currently generating about 0.09 per unit of volatility. If you would invest  847.00  in Axogen Inc on October 5, 2024 and sell it today you would earn a total of  801.00  from holding Axogen Inc or generate 94.57% return on investment over 90 days.

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

DarioHealth Corp  vs.  Axogen Inc

DarioHealth Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DarioHealth Corp 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 forward indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Axogen Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Axogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DarioHealth Corp and Axogen

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

The idea behind DarioHealth Corp and Axogen Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.