Correlation Between MiMedx and Innoviva

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

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

Diversification Opportunities for MiMedx and Innoviva

0.24

Correlation Coefficient

MiMedx  Innoviva

Modest diversification

The 3 months correlation between MiMedx and Innoviva is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MiMedx Group and Innoviva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innoviva and MiMedx 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 MiMedx Group are associated (or correlated) with Innoviva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innoviva has no effect on the direction of MiMedx i.e., MiMedx and Innoviva go up and down completely randomly.

Pair Corralation between MiMedx and Innoviva

Given the investment horizon of 90 days MiMedx Group is expected to under-perform the Innoviva. In addition to that, MiMedx is 1.14 times more volatile than Innoviva. It trades about -0.07 of its total potential returns per unit of risk. Innoviva is currently generating about 0.12 per unit of volatility. If you would invest  1,720  in Innoviva on October 7, 2025 and sell it today you would earn a total of  283.00  from holding Innoviva or generate 16.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

MiMedx Group  vs.  Innoviva

MiMedx Group

Risk-Adjusted Performance

Weakest

Over the last 90 days MiMedx Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Innoviva

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Innoviva are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Innoviva sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MiMedx and Innoviva

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

The idea behind MiMedx Group and Innoviva 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.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.