Correlation Between FOXO Technologies and ReShape Lifesciences
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and ReShape Lifesciences 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 ReShape Lifesciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and ReShape Lifesciences, you can compare the effects of market volatilities on FOXO Technologies and ReShape Lifesciences 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 ReShape Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and ReShape Lifesciences.
Diversification Opportunities for FOXO Technologies and ReShape Lifesciences
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FOXO and ReShape is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and ReShape Lifesciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReShape Lifesciences 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 ReShape Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReShape Lifesciences has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and ReShape Lifesciences go up and down completely randomly.
Pair Corralation between FOXO Technologies and ReShape Lifesciences
Given the investment horizon of 90 days FOXO Technologies is expected to generate 20.99 times more return on investment than ReShape Lifesciences. However, FOXO Technologies is 20.99 times more volatile than ReShape Lifesciences. It trades about 0.22 of its potential returns per unit of risk. ReShape Lifesciences is currently generating about 0.01 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 39.00 from holding FOXO Technologies or generate 278.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOXO Technologies vs. ReShape Lifesciences
Performance |
| Timeline |
| FOXO Technologies |
| ReShape Lifesciences |
FOXO Technologies and ReShape Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and ReShape Lifesciences
The main advantage of trading using opposite FOXO Technologies and ReShape Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, ReShape Lifesciences 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 ReShape Lifesciences will offset losses from the drop in ReShape Lifesciences' long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| ReShape Lifesciences vs. SINTX Technologies | ReShape Lifesciences vs. Bone Biologics Corp | ReShape Lifesciences vs. Tivic Health Systems | ReShape Lifesciences vs. Nuwellis |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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