Correlation Between Foxx Development and Blackrock Science

Can any of the company-specific risk be diversified away by investing in both Foxx Development and Blackrock Science 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 Foxx Development and Blackrock Science into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Foxx Development Holdings and Blackrock Science Technology, you can compare the effects of market volatilities on Foxx Development and Blackrock Science 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 Foxx Development with a short position of Blackrock Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxx Development and Blackrock Science.

Diversification Opportunities for Foxx Development and Blackrock Science

-0.2

Correlation Coefficient

Foxx Development  Blackrock Science

Good diversification

The 3 months correlation between Foxx and Blackrock is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Foxx Development Holdings and Blackrock Science Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Science and Foxx Development 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 Foxx Development Holdings are associated (or correlated) with Blackrock Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Science has no effect on the direction of Foxx Development i.e., Foxx Development and Blackrock Science go up and down completely randomly.

Pair Corralation between Foxx Development and Blackrock Science

Given the investment horizon of 90 days Foxx Development Holdings is expected to generate 10.4 times more return on investment than Blackrock Science. However, Foxx Development is 10.4 times more volatile than Blackrock Science Technology. It trades about 0.1 of its potential returns per unit of risk. Blackrock Science Technology is currently generating about -0.06 per unit of risk. If you would invest  333.00  in Foxx Development Holdings on December 2, 2024 and sell it today you would earn a total of  182.00  from holding Foxx Development Holdings or generate 54.65% return on investment over 90 days.

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

Foxx Development Holdings  vs.  Blackrock Science Technology

Foxx Development Holdings

Risk-Adjusted Performance

OK

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

Blackrock Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Science Technology has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Foxx Development and Blackrock Science

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

The idea behind Foxx Development Holdings and Blackrock Science 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.