Correlation Between Figs and FOXO Technologies
Can any of the company-specific risk be diversified away by investing in both Figs 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 Figs and FOXO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and FOXO Technologies, you can compare the effects of market volatilities on Figs 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 Figs with a short position of FOXO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and FOXO Technologies.
Diversification Opportunities for Figs and FOXO Technologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Figs and FOXO is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and FOXO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOXO Technologies and Figs 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 Figs 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 Figs i.e., Figs and FOXO Technologies go up and down completely randomly.
Pair Corralation between Figs and FOXO Technologies
Given the investment horizon of 90 days Figs Inc is expected to under-perform the FOXO Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Figs Inc is 14.9 times less risky than FOXO Technologies. The stock trades about -0.13 of its potential returns per unit of risk. The FOXO Technologies is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 14.00 in FOXO Technologies on August 28, 2024 and sell it today you would earn a total of 25.00 from holding FOXO Technologies or generate 178.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figs Inc vs. FOXO Technologies
Performance |
| Timeline |
| Figs Inc |
| FOXO Technologies |
Figs and FOXO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and FOXO Technologies
The main advantage of trading using opposite Figs and FOXO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs 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.The idea behind Figs Inc and FOXO Technologies 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.| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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