Correlation Between FOXO Technologies and Lifestance Health

Can any of the company-specific risk be diversified away by investing in both FOXO Technologies and Lifestance 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 Lifestance 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 Lifestance Health Group, you can compare the effects of market volatilities on FOXO Technologies and Lifestance 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 Lifestance Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOXO Technologies and Lifestance Health.

Diversification Opportunities for FOXO Technologies and Lifestance Health

0.14

Correlation Coefficient

FOXO Technologies  Lifestance Health

Average diversification

The 3 months correlation between FOXO and Lifestance is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FOXO Technologies and Lifestance Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifestance 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 Lifestance Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifestance Health has no effect on the direction of FOXO Technologies i.e., FOXO Technologies and Lifestance Health go up and down completely randomly.

Pair Corralation between FOXO Technologies and Lifestance Health

Given the investment horizon of 90 days FOXO Technologies is expected to generate 25.28 times more return on investment than Lifestance Health. However, FOXO Technologies is 25.28 times more volatile than Lifestance Health Group. It trades about 0.11 of its potential returns per unit of risk. Lifestance Health Group is currently generating about 0.08 per unit of risk. If you would invest  16.00  in FOXO Technologies on October 22, 2024 and sell it today you would earn a total of  7.00  from holding FOXO Technologies or generate 43.75% return on investment over 90 days.

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

FOXO Technologies  vs.  Lifestance Health Group

FOXO Technologies

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FOXO Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, FOXO Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Lifestance Health

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lifestance Health Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Lifestance Health may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FOXO Technologies and Lifestance Health

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

The idea behind FOXO Technologies and Lifestance Health Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.