Correlation Between Surgalign Holdings and Axogen

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

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

Diversification Opportunities for Surgalign Holdings and Axogen

0.03

Correlation Coefficient

Surgalign Holdings  Axogen

Significant diversification

The 3 months correlation between Surgalign and Axogen is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Surgalign Holdings and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Surgalign Holdings 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 Surgalign Holdings 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 Surgalign Holdings i.e., Surgalign Holdings and Axogen go up and down completely randomly.

Pair Corralation between Surgalign Holdings and Axogen

If you would invest  1,469  in Axogen Inc on September 17, 2024 and sell it today you would lose (53.00) from holding Axogen Inc or give up 3.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Surgalign Holdings  vs.  Axogen Inc

Surgalign Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surgalign Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Surgalign Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Axogen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Axogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with Surgalign Holdings and Axogen

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

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.