Correlation Between Tenon Medical and Aziyo Biologics

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

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

Diversification Opportunities for Tenon Medical and Aziyo Biologics

0.0

Correlation Coefficient

Tenon Medical  Aziyo Biologics

Pay attention - limited upside

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

Pair Corralation between Tenon Medical and Aziyo Biologics

If you would invest  191.00  in Tenon Medical on December 28, 2024 and sell it today you would earn a total of  89.00  from holding Tenon Medical or generate 46.6% return on investment over 90 days.

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

Tenon Medical  vs.  Aziyo Biologics

Tenon Medical

Risk-Adjusted Performance

OK

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

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 Tenon Medical and Aziyo Biologics

The main advantage of trading using opposite Tenon Medical and Aziyo Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenon Medical 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 Tenon Medical 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .