Correlation Between Avita Medical and MacroGenics

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

Diversification Opportunities for Avita Medical and MacroGenics

0.21
  Correlation Coefficient

Modest diversification

The 3 months correlation between Avita and MacroGenics is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Avita Medical and MacroGenics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MacroGenics and Avita Medical 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 Avita Medical are associated (or correlated) with MacroGenics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MacroGenics has no effect on the direction of Avita Medical i.e., Avita Medical and MacroGenics go up and down completely randomly.

Pair Corralation between Avita Medical and MacroGenics

Given the investment horizon of 90 days Avita Medical is expected to generate 0.75 times more return on investment than MacroGenics. However, Avita Medical is 1.34 times less risky than MacroGenics. It trades about 0.0 of its potential returns per unit of risk. MacroGenics is currently generating about -0.23 per unit of risk. If you would invest  379.00  in Avita Medical on August 28, 2025 and sell it today you would lose (4.00) from holding Avita Medical or give up 1.06% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Avita Medical  vs.  MacroGenics

 Performance 
       Timeline  
Avita Medical 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Avita Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Avita Medical is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
MacroGenics 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days MacroGenics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Avita Medical and MacroGenics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Avita Medical and MacroGenics

The main advantage of trading using opposite Avita Medical and MacroGenics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avita Medical position performs unexpectedly, MacroGenics 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 MacroGenics will offset losses from the drop in MacroGenics' long position.
The idea behind Avita Medical and MacroGenics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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