Correlation Between Axogen and Monte Rosa

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

By analyzing existing cross correlation between Axogen Inc and Monte Rosa Therapeutics, you can compare the effects of market volatilities on Axogen and Monte Rosa 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 Monte Rosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axogen and Monte Rosa.

Diversification Opportunities for Axogen and Monte Rosa

0.9

Correlation Coefficient

Axogen  Monte Rosa

Almost no diversification

The 3 months correlation between Axogen and Monte is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Axogen Inc and Monte Rosa Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monte Rosa Therapeutics 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 Monte Rosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monte Rosa Therapeutics has no effect on the direction of Axogen i.e., Axogen and Monte Rosa go up and down completely randomly.

Pair Corralation between Axogen and Monte Rosa

Given the investment horizon of 90 days Axogen is expected to generate 2.17 times less return on investment than Monte Rosa. But when comparing it to its historical volatility, Axogen Inc is 1.82 times less risky than Monte Rosa. It trades about 0.24 of its potential returns per unit of risk. Monte Rosa Therapeutics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  489.00  in Monte Rosa Therapeutics on September 11, 2025 and sell it today you would earn a total of  1,210  from holding Monte Rosa Therapeutics or generate 247.44% return on investment over 90 days.

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

Axogen Inc  vs.  Monte Rosa Therapeutics

Axogen Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axogen Inc are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Axogen displayed solid returns over the last few months and may actually be approaching a breakup point.

Monte Rosa Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Monte Rosa Therapeutics are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Monte Rosa exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axogen and Monte Rosa

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

The idea behind Axogen Inc and Monte Rosa Therapeutics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.