Correlation Between Hangzhou Alltest and Axogen

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hangzhou Alltest 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 Hangzhou Alltest and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hangzhou Alltest Biotech and Axogen Inc, you can compare the effects of market volatilities on Hangzhou Alltest 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 Hangzhou Alltest with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Alltest and Axogen.

Diversification Opportunities for Hangzhou Alltest and Axogen

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hangzhou and Axogen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Alltest Biotech and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Hangzhou Alltest 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 Hangzhou Alltest Biotech 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 Hangzhou Alltest i.e., Hangzhou Alltest and Axogen go up and down completely randomly.

Pair Corralation between Hangzhou Alltest and Axogen

Assuming the 90 days trading horizon Hangzhou Alltest Biotech is expected to under-perform the Axogen. But the stock apears to be less risky and, when comparing its historical volatility, Hangzhou Alltest Biotech is 3.47 times less risky than Axogen. The stock trades about -0.07 of its potential returns per unit of risk. The Axogen Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,690  in Axogen Inc on October 7, 2025 and sell it today you would earn a total of  1,410  from holding Axogen Inc or generate 83.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.83%
ValuesDaily Returns

Hangzhou Alltest Biotech  vs.  Axogen Inc

 Performance 
       Timeline  
Hangzhou Alltest Biotech 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hangzhou Alltest Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hangzhou Alltest 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

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Axogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Hangzhou Alltest and Axogen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hangzhou Alltest and Axogen

The main advantage of trading using opposite Hangzhou Alltest and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Alltest 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 Hangzhou Alltest Biotech 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm