Correlation Between Spectral and Axogen

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

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

Diversification Opportunities for Spectral and Axogen

-0.76

Correlation Coefficient

Spectral  Axogen

Pay attention - limited upside

The 3 months correlation between Spectral and Axogen is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Spectral AI and Axogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axogen Inc and Spectral 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 Spectral AI 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 Spectral i.e., Spectral and Axogen go up and down completely randomly.

Pair Corralation between Spectral and Axogen

Given the investment horizon of 90 days Spectral AI is expected to generate 1.26 times more return on investment than Axogen. However, Spectral is 1.26 times more volatile than Axogen Inc. It trades about 0.34 of its potential returns per unit of risk. Axogen Inc is currently generating about -0.19 per unit of risk. If you would invest  124.00  in Spectral AI on April 4, 2025 and sell it today you would earn a total of  143.00  from holding Spectral AI or generate 115.32% return on investment over 90 days.

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

Spectral AI  vs.  Axogen Inc

Spectral AI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Spectral AI are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Spectral demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Axogen Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axogen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Spectral and Axogen

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