Correlation Between HealthStream and Axogen

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

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

Diversification Opportunities for HealthStream and Axogen

-0.7

Correlation Coefficient

HealthStream  Axogen

Excellent diversification

The 3 months correlation between HealthStream and Axogen is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and HealthStream 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 HealthStream 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 HealthStream i.e., HealthStream and Axogen go up and down completely randomly.

Pair Corralation between HealthStream and Axogen

Given the investment horizon of 90 days HealthStream is expected to under-perform the Axogen. But the stock apears to be less risky and, when comparing its historical volatility, HealthStream is 2.67 times less risky than Axogen. The stock trades about -0.17 of its potential returns per unit of risk. The Axogen Inc is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,637  in Axogen Inc on September 14, 2025 and sell it today you would earn a total of  1,402  from holding Axogen Inc or generate 85.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

HealthStream  vs.  Axogen Inc

HealthStream

Risk-Adjusted Performance

Weakest

Over the last 90 days HealthStream has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.

Pair Trading with HealthStream and Axogen

The main advantage of trading using opposite HealthStream and Axogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream 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 HealthStream 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.