Correlation Between FOXO Technologies and JIN MEDICAL

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Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and JIN MEDICAL 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 JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FOXO Technologies and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on FOXO Technologies and JIN MEDICAL 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 JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and JIN MEDICAL.

Diversification Opportunities for FOXO Technologies and JIN MEDICAL

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FOXO and JIN is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and JIN MEDICAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIN MEDICAL INTERNATIONAL 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 JIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIN MEDICAL INTERNATIONAL has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and JIN MEDICAL go up and down completely randomly.

Pair Corralation between FOXO Technologies and JIN MEDICAL

Given the investment horizon of 90 days FOXO Technologies is expected to generate 6.31 times more return on investment than JIN MEDICAL. However, FOXO Technologies is 6.31 times more volatile than JIN MEDICAL INTERNATIONAL. It trades about 0.12 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about -0.15 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  36.00  from holding FOXO Technologies or generate 240.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

FOXO Technologies  vs.  JIN MEDICAL INTERNATIONAL

 Performance 
       Timeline  
FOXO Technologies 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in FOXO Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, FOXO Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.
JIN MEDICAL INTERNATIONAL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JIN MEDICAL INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

FOXO Technologies and JIN MEDICAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FOXO Technologies and JIN MEDICAL

The main advantage of trading using opposite FOXO Technologies and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FOXO Technologies position performs unexpectedly, JIN MEDICAL 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 JIN MEDICAL will offset losses from the drop in JIN MEDICAL's long position.
The idea behind FOXO Technologies and JIN MEDICAL INTERNATIONAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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