Correlation Between Nexalin Technology and Aziyo Biologics

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

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

Diversification Opportunities for Nexalin Technology and Aziyo Biologics

0.0

Correlation Coefficient

Nexalin Technology  Aziyo Biologics

Pay attention - limited upside

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

Pair Corralation between Nexalin Technology and Aziyo Biologics

If you would invest (100.00) in Aziyo Biologics on December 28, 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

Nexalin Technology  vs.  Aziyo Biologics

Nexalin Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nexalin Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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.

Pair Trading with Nexalin Technology and Aziyo Biologics

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

The idea behind Nexalin Technology and Aziyo Biologics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.