Correlation Between FOXO Technologies and Repro Med
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Repro Med 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 Repro Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and Repro Med Systems, you can compare the effects of market volatilities on FOXO Technologies and Repro Med 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 Repro Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Repro Med.
Diversification Opportunities for FOXO Technologies and Repro Med
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FOXO and Repro is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Repro Med Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repro Med Systems 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 Repro Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repro Med Systems has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Repro Med go up and down completely randomly.
Pair Corralation between FOXO Technologies and Repro Med
Given the investment horizon of 90 days FOXO Technologies is expected to generate 23.05 times more return on investment than Repro Med. However, FOXO Technologies is 23.05 times more volatile than Repro Med Systems. It trades about 0.2 of its potential returns per unit of risk. Repro Med Systems is currently generating about 0.4 per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOXO Technologies vs. Repro Med Systems
Performance |
| Timeline |
| FOXO Technologies |
| Repro Med Systems |
FOXO Technologies and Repro Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and Repro Med
The main advantage of trading using opposite FOXO Technologies and Repro Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, Repro Med 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 Repro Med will offset losses from the drop in Repro Med's long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| Repro Med vs. Precision Optics, | Repro Med vs. InfuSystems Holdings | Repro Med vs. Utah Medical Products | Repro Med vs. Milestone Scientific |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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