Correlation Between FOXO Technologies and LifeMD
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and LifeMD 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 LifeMD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and LifeMD Inc, you can compare the effects of market volatilities on FOXO Technologies and LifeMD 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 LifeMD. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and LifeMD.
Diversification Opportunities for FOXO Technologies and LifeMD
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FOXO and LifeMD is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and LifeMD Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeMD Inc 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 LifeMD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeMD Inc has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and LifeMD go up and down completely randomly.
Pair Corralation between FOXO Technologies and LifeMD
Given the investment horizon of 90 days FOXO Technologies is expected to generate 4.41 times more return on investment than LifeMD. However, FOXO Technologies is 4.41 times more volatile than LifeMD Inc. It trades about 0.03 of its potential returns per unit of risk. LifeMD Inc is currently generating about 0.06 per unit of risk. If you would invest 496.00 in FOXO Technologies on August 31, 2024 and sell it today you would lose (445.00) from holding FOXO Technologies or give up 89.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
FOXO Technologies vs. LifeMD Inc
Performance |
| Timeline |
| FOXO Technologies |
| LifeMD Inc |
FOXO Technologies and LifeMD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and LifeMD
The main advantage of trading using opposite FOXO Technologies and LifeMD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, LifeMD 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 LifeMD will offset losses from the drop in LifeMD's long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| LifeMD vs. Streamline Health Solutions | LifeMD vs. HealthStream | LifeMD vs. National Research Corp | LifeMD vs. Privia Health Group |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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