Correlation Between FOXO Technologies and Pro Dex
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Pro Dex 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 Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and Pro Dex, you can compare the effects of market volatilities on FOXO Technologies and Pro Dex 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 Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Pro Dex.
Diversification Opportunities for FOXO Technologies and Pro Dex
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FOXO and Pro is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Pro Dex go up and down completely randomly.
Pair Corralation between FOXO Technologies and Pro Dex
Given the investment horizon of 90 days FOXO Technologies is expected to generate 14.48 times more return on investment than Pro Dex. However, FOXO Technologies is 14.48 times more volatile than Pro Dex. It trades about 0.21 of its potential returns per unit of risk. Pro Dex is currently generating about 0.38 per unit of risk. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOXO Technologies vs. Pro Dex
Performance |
| Timeline |
| FOXO Technologies |
| Pro Dex |
FOXO Technologies and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and Pro Dex
The main advantage of trading using opposite FOXO Technologies and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, Pro Dex 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 Pro Dex will offset losses from the drop in Pro Dex's long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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