Correlation Between FOXO Technologies and Evolent Health

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

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

Diversification Opportunities for FOXO Technologies and Evolent Health

0.68

Correlation Coefficient

FOXO Technologies  Evolent Health

Poor diversification

The 3 months correlation between FOXO and Evolent is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Evolent Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolent Health 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 Evolent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolent Health has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Evolent Health go up and down completely randomly.

Pair Corralation between FOXO Technologies and Evolent Health

Given the investment horizon of 90 days FOXO Technologies is expected to under-perform the Evolent Health. In addition to that, FOXO Technologies is 3.12 times more volatile than Evolent Health. It trades about -0.07 of its total potential returns per unit of risk. Evolent Health is currently generating about -0.05 per unit of volatility. If you would invest  1,098  in Evolent Health on December 28, 2024 and sell it today you would lose (153.00) from holding Evolent Health or give up 13.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

FOXO Technologies  vs.  Evolent Health

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.

Evolent Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolent Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with FOXO Technologies and Evolent Health

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

The idea behind FOXO Technologies and Evolent Health 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.