Correlation Between MiMedx and TRACON Pharmaceuticals

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Can any of the company-specific risk be diversified away by investing in both MiMedx and TRACON Pharmaceuticals 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 MiMedx and TRACON Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MiMedx Group and TRACON Pharmaceuticals, you can compare the effects of market volatilities on MiMedx and TRACON Pharmaceuticals 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 MiMedx with a short position of TRACON Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MiMedx and TRACON Pharmaceuticals.

Diversification Opportunities for MiMedx and TRACON Pharmaceuticals

MiMedxTRACONDiversified AwayMiMedxTRACONDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between MiMedx and TRACON Pharmaceuticals

If you would invest (100.00) in TRACON Pharmaceuticals on November 21, 2024 and sell it today you would earn a total of  100.00  from holding TRACON Pharmaceuticals or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

MiMedx Group  vs.  TRACON Pharmaceuticals

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0510152025
JavaScript chart by amCharts 3.21.15MDXG TCON
       Timeline  
MiMedx Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days MiMedx Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb88.599.510
TRACON Pharmaceuticals 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days TRACON Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, TRACON Pharmaceuticals is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

MiMedx and TRACON Pharmaceuticals Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.81-8.1-5.38-2.670.02.695.468.2411.0213.8 0.0050.0100.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15MDXG TCON
       Returns  

Pair Trading with MiMedx and TRACON Pharmaceuticals

The main advantage of trading using opposite MiMedx and TRACON Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MiMedx position performs unexpectedly, TRACON Pharmaceuticals 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 TRACON Pharmaceuticals will offset losses from the drop in TRACON Pharmaceuticals' long position.
The idea behind MiMedx Group and TRACON Pharmaceuticals 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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