Correlation Between FOXO Technologies and Smith Nephew
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Smith Nephew 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 Smith Nephew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and Smith Nephew SNATS, you can compare the effects of market volatilities on FOXO Technologies and Smith Nephew 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 Smith Nephew. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Smith Nephew.
Diversification Opportunities for FOXO Technologies and Smith Nephew
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FOXO and Smith is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Smith Nephew SNATS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Nephew SNATS 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 Smith Nephew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Nephew SNATS has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Smith Nephew go up and down completely randomly.
Pair Corralation between FOXO Technologies and Smith Nephew
Given the investment horizon of 90 days FOXO Technologies is expected to generate 15.14 times more return on investment than Smith Nephew. However, FOXO Technologies is 15.14 times more volatile than Smith Nephew SNATS. It trades about 0.03 of its potential returns per unit of risk. Smith Nephew SNATS is currently generating about 0.01 per unit of risk. If you would invest 560.00 in FOXO Technologies on August 24, 2024 and sell it today you would lose (506.00) from holding FOXO Technologies or give up 90.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
FOXO Technologies vs. Smith Nephew SNATS
Performance |
| Timeline |
| FOXO Technologies |
| Smith Nephew SNATS |
FOXO Technologies and Smith Nephew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and Smith Nephew
The main advantage of trading using opposite FOXO Technologies and Smith Nephew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, Smith Nephew 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 Smith Nephew will offset losses from the drop in Smith Nephew's long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| Smith Nephew vs. CochLear Ltd ADR | Smith Nephew vs. Integer Holdings Corp | Smith Nephew vs. Orthofix Medical | Smith Nephew vs. Glaukos Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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