Correlation Between Axogen and BioLife Solutions

Can any of the company-specific risk be diversified away by investing in both Axogen and BioLife Solutions 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 Axogen and BioLife Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axogen Inc and BioLife Solutions, you can compare the effects of market volatilities on Axogen and BioLife Solutions 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 Axogen with a short position of BioLife Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and BioLife Solutions.

Diversification Opportunities for Axogen and BioLife Solutions

0.28

Correlation Coefficient

Axogen  BioLife Solutions

Modest diversification

The 3 months correlation between Axogen and BioLife is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions and Axogen 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 Axogen Inc are associated (or correlated) with BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of Axogen i.e., Axogen and BioLife Solutions go up and down completely randomly.

Pair Corralation between Axogen and BioLife Solutions

Given the investment horizon of 90 days Axogen Inc is expected to generate 1.08 times more return on investment than BioLife Solutions. However, Axogen is 1.08 times more volatile than BioLife Solutions. It trades about 0.01 of its potential returns per unit of risk. BioLife Solutions is currently generating about -0.03 per unit of risk. If you would invest  1,259  in Axogen Inc on May 8, 2025 and sell it today you would lose (4.00) from holding Axogen Inc or give up 0.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Axogen Inc  vs.  BioLife Solutions

Axogen Inc

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Axogen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

BioLife Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days BioLife Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, BioLife Solutions is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Axogen and BioLife Solutions

The main advantage of trading using opposite Axogen and BioLife Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axogen position performs unexpectedly, BioLife Solutions 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 BioLife Solutions will offset losses from the drop in BioLife Solutions' long position.

The idea behind Axogen Inc and BioLife Solutions 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.