Correlation Between Cardinal Health and Axogen
Can any of the company-specific risk be diversified away by investing in both Cardinal Health 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 Cardinal Health and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardinal Health and Axogen Inc, you can compare the effects of market volatilities on Cardinal Health 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 Cardinal Health with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardinal Health and Axogen.
Diversification Opportunities for Cardinal Health and Axogen
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardinal and Axogen is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cardinal Health and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Cardinal Health 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 Cardinal Health 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 Cardinal Health i.e., Cardinal Health and Axogen go up and down completely randomly.
Pair Corralation between Cardinal Health and Axogen
Considering the 90-day investment horizon Cardinal Health is expected to under-perform the Axogen. But the stock apears to be less risky and, when comparing its historical volatility, Cardinal Health is 2.29 times less risky than Axogen. The stock trades about -0.14 of its potential returns per unit of risk. The Axogen Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,176 in Axogen Inc on June 9, 2025 and sell it today you would earn a total of 422.00 from holding Axogen Inc or generate 35.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cardinal Health vs. Axogen Inc
Performance |
| Timeline |
| Cardinal Health |
| Axogen Inc |
Cardinal Health and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardinal Health and Axogen
The main advantage of trading using opposite Cardinal Health and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardinal Health 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.| Cardinal Health vs. Humana Inc | Cardinal Health vs. Cigna Corp | Cardinal Health vs. UnitedHealth Group Incorporated | Cardinal Health vs. Molina Healthcare |
| Axogen vs. AnaptysBio | Axogen vs. Anika Therapeutics | Axogen vs. Artivion | Axogen vs. Assembly Biosciences |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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