Correlation Between EDAP TMS and Axogen
Can any of the company-specific risk be diversified away by investing in both EDAP TMS 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 EDAP TMS and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EDAP TMS SA and Axogen Inc, you can compare the effects of market volatilities on EDAP TMS 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 EDAP TMS with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of EDAP TMS and Axogen.
Diversification Opportunities for EDAP TMS and Axogen
Very good diversification
The 3 months correlation between EDAP and Axogen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding EDAP TMS SA and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and EDAP TMS 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 EDAP TMS SA 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 EDAP TMS i.e., EDAP TMS and Axogen go up and down completely randomly.
Pair Corralation between EDAP TMS and Axogen
Given the investment horizon of 90 days EDAP TMS is expected to generate 1.28 times less return on investment than Axogen. In addition to that, EDAP TMS is 1.54 times more volatile than Axogen Inc. It trades about 0.1 of its total potential returns per unit of risk. Axogen Inc is currently generating about 0.19 per unit of volatility. If you would invest 1,136 in Axogen Inc on June 3, 2025 and sell it today you would earn a total of 478.00 from holding Axogen Inc or generate 42.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EDAP TMS SA vs. Axogen Inc
Performance |
| Timeline |
| EDAP TMS SA |
| Axogen Inc |
EDAP TMS and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EDAP TMS and Axogen
The main advantage of trading using opposite EDAP TMS and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EDAP TMS 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 EDAP TMS SA 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.| 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.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |