Correlation Between FOXO Technologies and Tandem Diabetes
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Tandem Diabetes 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 Tandem Diabetes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and Tandem Diabetes Care, you can compare the effects of market volatilities on FOXO Technologies and Tandem Diabetes 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 Tandem Diabetes. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Tandem Diabetes.
Diversification Opportunities for FOXO Technologies and Tandem Diabetes
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FOXO and Tandem is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Tandem Diabetes Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tandem Diabetes Care 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 Tandem Diabetes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tandem Diabetes Care has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Tandem Diabetes go up and down completely randomly.
Pair Corralation between FOXO Technologies and Tandem Diabetes
Given the investment horizon of 90 days FOXO Technologies is expected to generate 26.6 times more return on investment than Tandem Diabetes. However, FOXO Technologies is 26.6 times more volatile than Tandem Diabetes Care. It trades about 0.21 of its potential returns per unit of risk. Tandem Diabetes Care is currently generating about -0.05 per unit of risk. If you would invest 15.00 in FOXO Technologies on August 30, 2024 and sell it today you would earn a total of 38.00 from holding FOXO Technologies or generate 253.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOXO Technologies vs. Tandem Diabetes Care
Performance |
| Timeline |
| FOXO Technologies |
| Tandem Diabetes Care |
FOXO Technologies and Tandem Diabetes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and Tandem Diabetes
The main advantage of trading using opposite FOXO Technologies and Tandem Diabetes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, Tandem Diabetes 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 Tandem Diabetes will offset losses from the drop in Tandem Diabetes' long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| Tandem Diabetes vs. ReShape Lifesciences | Tandem Diabetes vs. Bone Biologics Corp | Tandem Diabetes vs. Tivic Health Systems | Tandem Diabetes 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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