Correlation Between Foxx Development and SinglePoint
Can any of the company-specific risk be diversified away by investing in both Foxx Development and SinglePoint 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 Foxx Development and SinglePoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foxx Development Holdings and SinglePoint, you can compare the effects of market volatilities on Foxx Development and SinglePoint 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 Foxx Development with a short position of SinglePoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxx Development and SinglePoint.
Diversification Opportunities for Foxx Development and SinglePoint
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Foxx and SinglePoint is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Foxx Development Holdings and SinglePoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinglePoint and Foxx Development 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 Foxx Development Holdings are associated (or correlated) with SinglePoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinglePoint has no effect on the direction of Foxx Development i.e., Foxx Development and SinglePoint go up and down completely randomly.
Pair Corralation between Foxx Development and SinglePoint
Given the investment horizon of 90 days Foxx Development is expected to generate 8.53 times less return on investment than SinglePoint. But when comparing it to its historical volatility, Foxx Development Holdings is 1.86 times less risky than SinglePoint. It trades about 0.06 of its potential returns per unit of risk. SinglePoint is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1.30 in SinglePoint on November 2, 2024 and sell it today you would earn a total of 2.30 from holding SinglePoint or generate 176.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.67% |
| Values | Daily Returns |
Foxx Development Holdings vs. SinglePoint
Performance |
| Timeline |
| Foxx Development Holdings |
| SinglePoint |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Foxx Development and SinglePoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foxx Development and SinglePoint
The main advantage of trading using opposite Foxx Development and SinglePoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foxx Development position performs unexpectedly, SinglePoint 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 SinglePoint will offset losses from the drop in SinglePoint's long position.| Foxx Development vs. Datadog | Foxx Development vs. Weibo Corp | Foxx Development vs. Infosys Ltd ADR | Foxx Development vs. Nasdaq Inc |
| SinglePoint vs. China Changjiang Mining | SinglePoint vs. FTC Solar | SinglePoint vs. Solar Integrated Roofing | SinglePoint vs. Ascent Solar Technologies, |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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