Correlation Between FOXO Technologies and Check Cap
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Check Cap 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 FOXO Technologies and Check Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and Check Cap, you can compare the effects of market volatilities on FOXO Technologies and Check Cap 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 FOXO Technologies with a short position of Check Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Check Cap.
Diversification Opportunities for FOXO Technologies and Check Cap
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FOXO and Check is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap and FOXO Technologies 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 FOXO Technologies are associated (or correlated) with Check Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Check Cap go up and down completely randomly.
Pair Corralation between FOXO Technologies and Check Cap
Given the investment horizon of 90 days FOXO Technologies is expected to generate 3.99 times more return on investment than Check Cap. However, FOXO Technologies is 3.99 times more volatile than Check Cap. It trades about 0.03 of its potential returns per unit of risk. Check Cap is currently generating about -0.01 per unit of risk. If you would invest 360.00 in FOXO Technologies on August 28, 2024 and sell it today you would lose (321.00) from holding FOXO Technologies or give up 89.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
FOXO Technologies vs. Check Cap
Performance |
| Timeline |
| FOXO Technologies |
| Check Cap |
FOXO Technologies and Check Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and Check Cap
The main advantage of trading using opposite FOXO Technologies and Check Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, Check Cap 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 Check Cap will offset losses from the drop in Check Cap's long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| Check Cap vs. Fonar | Check Cap vs. Burning Rock Biotech | Check Cap vs. Sera Prognostics | Check Cap vs. Psychemedics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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