Correlation Between STRATA Skin and Axogen
Can any of the company-specific risk be diversified away by investing in both STRATA Skin 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 STRATA Skin and Axogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRATA Skin Sciences and Axogen Inc, you can compare the effects of market volatilities on STRATA Skin 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 STRATA Skin with a short position of Axogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Axogen.
Diversification Opportunities for STRATA Skin and Axogen
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STRATA and Axogen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and STRATA Skin 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 STRATA Skin Sciences 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 STRATA Skin i.e., STRATA Skin and Axogen go up and down completely randomly.
Pair Corralation between STRATA Skin and Axogen
Given the investment horizon of 90 days STRATA Skin Sciences is expected to under-perform the Axogen. In addition to that, STRATA Skin is 2.26 times more volatile than Axogen Inc. It trades about -0.03 of its total potential returns per unit of risk. Axogen Inc is currently generating about 0.23 per unit of volatility. If you would invest 1,041 in Axogen Inc on June 8, 2025 and sell it today you would earn a total of 557.00 from holding Axogen Inc or generate 53.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
STRATA Skin Sciences vs. Axogen Inc
Performance |
| Timeline |
| STRATA Skin Sciences |
| Axogen Inc |
STRATA Skin and Axogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRATA Skin and Axogen
The main advantage of trading using opposite STRATA Skin and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin 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.| STRATA Skin vs. Elutia Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. SurModics | STRATA Skin vs. LENSAR Inc |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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