Correlation Between FOXO Technologies and Cannabis Sativa

Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Cannabis Sativa 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 Cannabis Sativa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FOXO Technologies and Cannabis Sativa, you can compare the effects of market volatilities on FOXO Technologies and Cannabis Sativa 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 Cannabis Sativa. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Cannabis Sativa.

Diversification Opportunities for FOXO Technologies and Cannabis Sativa

0.23

Correlation Coefficient

FOXO Technologies  Cannabis Sativa

Modest diversification

The 3 months correlation between FOXO and Cannabis is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Cannabis Sativa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Sativa 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 Cannabis Sativa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Sativa has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Cannabis Sativa go up and down completely randomly.

Pair Corralation between FOXO Technologies and Cannabis Sativa

Given the investment horizon of 90 days FOXO Technologies is expected to under-perform the Cannabis Sativa. But the stock apears to be less risky and, when comparing its historical volatility, FOXO Technologies is 1.24 times less risky than Cannabis Sativa. The stock trades about -0.04 of its potential returns per unit of risk. The Cannabis Sativa is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6.70  in Cannabis Sativa on December 19, 2024 and sell it today you would lose (2.52) from holding Cannabis Sativa or give up 37.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

FOXO Technologies  vs.  Cannabis Sativa

FOXO Technologies

Risk-Adjusted Performance

Very Weak

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

Cannabis Sativa

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cannabis Sativa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively conflicting fundamental indicators, Cannabis Sativa may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with FOXO Technologies and Cannabis Sativa

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

The idea behind FOXO Technologies and Cannabis Sativa 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.