Correlation Between Axogen and Ainos

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

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

Diversification Opportunities for Axogen and Ainos

-0.22

Correlation Coefficient

Axogen  Ainos

Very good diversification

The 3 months correlation between Axogen and Ainos is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc and Axogen 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 Axogen Inc are associated (or correlated) with Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Axogen i.e., Axogen and Ainos go up and down completely randomly.

Pair Corralation between Axogen and Ainos

Given the investment horizon of 90 days Axogen Inc is expected to generate 0.49 times more return on investment than Ainos. However, Axogen Inc is 2.03 times less risky than Ainos. It trades about 0.3 of its potential returns per unit of risk. Ainos Inc is currently generating about 0.02 per unit of risk. If you would invest  1,264  in Axogen Inc on September 16, 2024 and sell it today you would earn a total of  152.00  from holding Axogen Inc or generate 12.03% return on investment over 90 days.

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

Axogen Inc  vs.  Ainos Inc

Axogen Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Axogen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Ainos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Ainos is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Axogen and Ainos

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

The idea behind Axogen Inc and Ainos 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..