Correlation Between 10X Genomics and FOXO Technologies

Can any of the company-specific risk be diversified away by investing in both 10X Genomics and FOXO Technologies 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 10X Genomics and FOXO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 10X Genomics and FOXO Technologies, you can compare the effects of market volatilities on 10X Genomics and FOXO Technologies 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 10X Genomics with a short position of FOXO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 10X Genomics and FOXO Technologies.

Diversification Opportunities for 10X Genomics and FOXO Technologies

0.81

Correlation Coefficient

10X Genomics  FOXO Technologies

Very poor diversification

The 3 months correlation between 10X and FOXO is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 10X Genomics and FOXO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOXO Technologies and 10X Genomics 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 10X Genomics are associated (or correlated) with FOXO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOXO Technologies has no effect on the direction of 10X Genomics i.e., 10X Genomics and FOXO Technologies go up and down completely randomly.

Pair Corralation between 10X Genomics and FOXO Technologies

Considering the 90-day investment horizon 10X Genomics is expected to under-perform the FOXO Technologies. But the stock apears to be less risky and, when comparing its historical volatility, 10X Genomics is 2.58 times less risky than FOXO Technologies. The stock trades about -0.13 of its potential returns per unit of risk. The FOXO Technologies is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  28.00  in FOXO Technologies on December 26, 2024 and sell it today you would lose (13.00) from holding FOXO Technologies or give up 46.43% of portfolio value over 90 days.

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

10X Genomics  vs.  FOXO Technologies

10X Genomics

Risk-Adjusted Performance

Very Weak

Over the last 90 days 10X Genomics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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.

Pair Trading with 10X Genomics and FOXO Technologies

The main advantage of trading using opposite 10X Genomics and FOXO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 10X Genomics position performs unexpectedly, FOXO Technologies 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 FOXO Technologies will offset losses from the drop in FOXO Technologies' long position.

The idea behind 10X Genomics and FOXO Technologies 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.