Correlation Between Foxx Development and Victory Rs

Can any of the company-specific risk be diversified away by investing in both Foxx Development and Victory Rs 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 Victory Rs 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 Victory Rs Science, you can compare the effects of market volatilities on Foxx Development and Victory Rs 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 Victory Rs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foxx Development and Victory Rs.

Diversification Opportunities for Foxx Development and Victory Rs

-0.11

Correlation Coefficient

Foxx Development  Victory Rs

Good diversification

The 3 months correlation between Foxx and Victory is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Foxx Development Holdings and Victory Rs Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Rs 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 Victory Rs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Rs Science has no effect on the direction of Foxx Development i.e., Foxx Development and Victory Rs go up and down completely randomly.

Pair Corralation between Foxx Development and Victory Rs

Given the investment horizon of 90 days Foxx Development Holdings is expected to generate 4.64 times more return on investment than Victory Rs. However, Foxx Development is 4.64 times more volatile than Victory Rs Science. It trades about 0.06 of its potential returns per unit of risk. Victory Rs Science is currently generating about -0.27 per unit of risk. If you would invest  476.00  in Foxx Development Holdings on December 4, 2024 and sell it today you would earn a total of  23.00  from holding Foxx Development Holdings or generate 4.83% 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.  Victory Rs Science

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.

Victory Rs Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victory Rs Science has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Foxx Development and Victory Rs

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

The idea behind Foxx Development Holdings and Victory Rs Science 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.