Correlation Between Nexgel and FOXO Technologies
Can any of the company-specific risk be diversified away by investing in both Nexgel and FOXO Technologies 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 Nexgel and FOXO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexgel Inc and FOXO Technologies, you can compare the effects of market volatilities on Nexgel and FOXO Technologies 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 Nexgel with a short position of FOXO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgel and FOXO Technologies.
Diversification Opportunities for Nexgel and FOXO Technologies
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nexgel and FOXO is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nexgel Inc and FOXO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOXO Technologies and Nexgel 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 Nexgel Inc are associated (or correlated) with FOXO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOXO Technologies has no effect on the direction of Nexgel i.e., Nexgel and FOXO Technologies go up and down completely randomly.
Pair Corralation between Nexgel and FOXO Technologies
Given the investment horizon of 90 days Nexgel is expected to generate 28.37 times less return on investment than FOXO Technologies. But when comparing it to its historical volatility, Nexgel Inc is 21.38 times less risky than FOXO Technologies. It trades about 0.16 of its potential returns per unit of risk. FOXO Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 14.00 in FOXO Technologies on August 31, 2024 and sell it today you would earn a total of 37.00 from holding FOXO Technologies or generate 264.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexgel Inc vs. FOXO Technologies
Performance |
| Timeline |
| Nexgel Inc |
| FOXO Technologies |
Nexgel and FOXO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexgel and FOXO Technologies
The main advantage of trading using opposite Nexgel and FOXO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgel position performs unexpectedly, FOXO Technologies 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 FOXO Technologies will offset losses from the drop in FOXO Technologies' long position.| Nexgel vs. GlucoTrack | Nexgel vs. Predictive Oncology | Nexgel vs. Pro Dex | Nexgel vs. JIN MEDICAL INTERNATIONAL |
| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
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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