Correlation Between Akili and FOXO Technologies
Can any of the company-specific risk be diversified away by investing in both Akili and FOXO Technologies 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 Akili and FOXO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akili Inc and FOXO Technologies, you can compare the effects of market volatilities on Akili and FOXO Technologies 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 Akili with a short position of FOXO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akili and FOXO Technologies.
Diversification Opportunities for Akili and FOXO Technologies
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Akili and FOXO is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Akili Inc and FOXO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOXO Technologies and Akili 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 Akili Inc are associated (or correlated) with FOXO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOXO Technologies has no effect on the direction of Akili i.e., Akili and FOXO Technologies go up and down completely randomly.
Pair Corralation between Akili and FOXO Technologies
Given the investment horizon of 90 days Akili is expected to generate 2.62 times less return on investment than FOXO Technologies. But when comparing it to its historical volatility, Akili Inc is 2.6 times less risky than FOXO Technologies. It trades about 0.05 of its potential returns per unit of risk. FOXO Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 58.00 in FOXO Technologies on August 26, 2024 and sell it today you would lose (4.00) from holding FOXO Technologies or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.53% |
| Values | Daily Returns |
Akili Inc vs. FOXO Technologies
Performance |
| Timeline |
| Akili Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FOXO Technologies |
Akili and FOXO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akili and FOXO Technologies
The main advantage of trading using opposite Akili and FOXO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akili position performs unexpectedly, FOXO Technologies 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 FOXO Technologies will offset losses from the drop in FOXO Technologies' long position.| Akili vs. EUDA Health Holdings | Akili vs. FOXO Technologies | Akili vs. Aclarion | Akili vs. National Research Corp |
| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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