Correlation Between Telesis Bio and Axogen

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

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

Diversification Opportunities for Telesis Bio and Axogen

0.0

Correlation Coefficient

Telesis Bio  Axogen

Pay attention - limited upside

The 3 months correlation between Telesis and Axogen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Telesis Bio and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Telesis Bio 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 Telesis Bio 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 Telesis Bio i.e., Telesis Bio and Axogen go up and down completely randomly.

Pair Corralation between Telesis Bio and Axogen

If you would invest  1,649  in Axogen Inc on December 29, 2024 and sell it today you would earn a total of  250.00  from holding Axogen Inc or generate 15.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Telesis Bio  vs.  Axogen Inc

Telesis Bio

Risk-Adjusted Performance

Very Weak

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

Axogen Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 6 (%) 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 Telesis Bio and Axogen

The main advantage of trading using opposite Telesis Bio and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telesis Bio 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 Telesis Bio 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.