Correlation Between EGF Theramed and FOXO Technologies
Can any of the company-specific risk be diversified away by investing in both EGF Theramed 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 EGF Theramed and FOXO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EGF Theramed Health and FOXO Technologies, you can compare the effects of market volatilities on EGF Theramed 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 EGF Theramed with a short position of FOXO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGF Theramed and FOXO Technologies.
Diversification Opportunities for EGF Theramed and FOXO Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EGF and FOXO is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding EGF Theramed Health and FOXO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOXO Technologies and EGF Theramed 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 EGF Theramed Health 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 EGF Theramed i.e., EGF Theramed and FOXO Technologies go up and down completely randomly.
Pair Corralation between EGF Theramed and FOXO Technologies
Assuming the 90 days horizon EGF Theramed is expected to generate 2.4 times less return on investment than FOXO Technologies. But when comparing it to its historical volatility, EGF Theramed Health is 2.99 times less risky than FOXO Technologies. It trades about 0.27 of its potential returns per unit of risk. FOXO Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 14.00 in FOXO Technologies on August 31, 2024 and sell it today you would earn a total of 37.00 from holding FOXO Technologies or generate 264.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EGF Theramed Health vs. FOXO Technologies
Performance |
| Timeline |
| EGF Theramed Health |
| FOXO Technologies |
EGF Theramed and FOXO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGF Theramed and FOXO Technologies
The main advantage of trading using opposite EGF Theramed and FOXO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGF Theramed 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.| EGF Theramed vs. GE HealthCare Technologies | EGF Theramed vs. Veeva Systems Class | EGF Theramed vs. M3 Inc | EGF Theramed vs. M3 Inc |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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