Correlation Between FOXO Technologies and Varex Imaging
Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Varex Imaging 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 Varex Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and Varex Imaging Corp, you can compare the effects of market volatilities on FOXO Technologies and Varex Imaging 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 Varex Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Varex Imaging.
Diversification Opportunities for FOXO Technologies and Varex Imaging
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FOXO and Varex is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Varex Imaging Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varex Imaging Corp 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 Varex Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varex Imaging Corp has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Varex Imaging go up and down completely randomly.
Pair Corralation between FOXO Technologies and Varex Imaging
Given the investment horizon of 90 days FOXO Technologies is expected to generate 36.58 times more return on investment than Varex Imaging. However, FOXO Technologies is 36.58 times more volatile than Varex Imaging Corp. It trades about 0.2 of its potential returns per unit of risk. Varex Imaging Corp is currently generating about 0.39 per unit of risk. If you would invest 14.00 in FOXO Technologies on August 27, 2024 and sell it today you would earn a total of 25.00 from holding FOXO Technologies or generate 178.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FOXO Technologies vs. Varex Imaging Corp
Performance |
| Timeline |
| FOXO Technologies |
| Varex Imaging Corp |
FOXO Technologies and Varex Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FOXO Technologies and Varex Imaging
The main advantage of trading using opposite FOXO Technologies and Varex Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, Varex Imaging 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 Varex Imaging will offset losses from the drop in Varex Imaging's long position.| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
| Varex Imaging vs. Sight Sciences | Varex Imaging vs. Apyx Medical | Varex Imaging vs. Si Bone | Varex Imaging vs. Iradimed Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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