Correlation Between Fox Corp and Haoxi Health

Can any of the company-specific risk be diversified away by investing in both Fox Corp and Haoxi Health 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 Fox Corp and Haoxi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fox Corp Class and Haoxi Health Technology, you can compare the effects of market volatilities on Fox Corp and Haoxi Health 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 Fox Corp with a short position of Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Corp and Haoxi Health.

Diversification Opportunities for Fox Corp and Haoxi Health

-0.59

Correlation Coefficient

Fox Corp  Haoxi Health

Excellent diversification

The 3 months correlation between Fox and Haoxi is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fox Corp Class and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology and Fox Corp 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 Fox Corp Class are associated (or correlated) with Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Fox Corp i.e., Fox Corp and Haoxi Health go up and down completely randomly.

Pair Corralation between Fox Corp and Haoxi Health

Given the investment horizon of 90 days Fox Corp Class is expected to generate 0.1 times more return on investment than Haoxi Health. However, Fox Corp Class is 10.38 times less risky than Haoxi Health. It trades about 0.17 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.26 per unit of risk. If you would invest  4,076  in Fox Corp Class on September 3, 2024 and sell it today you would earn a total of  601.00  from holding Fox Corp Class or generate 14.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Fox Corp Class  vs.  Haoxi Health Technology

Fox Corp Class

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fox Corp Class are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Fox Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Haoxi Health Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Haoxi Health Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Fox Corp and Haoxi Health

The main advantage of trading using opposite Fox Corp and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Corp position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.

The idea behind Fox Corp Class and Haoxi Health Technology 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.