Correlation Between Foresight Autonomous and Can Fite

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

By analyzing existing cross correlation between Foresight Autonomous Holdings and Can Fite Biopharma, you can compare the effects of market volatilities on Foresight Autonomous and Can Fite 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 Foresight Autonomous with a short position of Can Fite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and Can Fite.

Diversification Opportunities for Foresight Autonomous and Can Fite

0.0

Correlation Coefficient

Foresight Autonomous  Can Fite

Pay attention - limited upside

The 3 months correlation between Foresight and Can is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and Can Fite Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fite Biopharma and Foresight Autonomous 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 Foresight Autonomous Holdings are associated (or correlated) with Can Fite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fite Biopharma has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and Can Fite go up and down completely randomly.

Pair Corralation between Foresight Autonomous and Can Fite

Assuming the 90 days trading horizon Foresight Autonomous Holdings is expected to generate 1.33 times more return on investment than Can Fite. However, Foresight Autonomous is 1.33 times more volatile than Can Fite Biopharma. It trades about 0.04 of its potential returns per unit of risk. Can Fite Biopharma is currently generating about 0.02 per unit of risk. If you would invest  1,310  in Foresight Autonomous Holdings on February 27, 2024 and sell it today you would earn a total of  40.00  from holding Foresight Autonomous Holdings or generate 3.05% return on investment over 90 days.

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

Foresight Autonomous Holdings  vs.  Can Fite Biopharma

Foresight Autonomous

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Foresight Autonomous Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Foresight Autonomous may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Can Fite Biopharma

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Can Fite Biopharma are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Can Fite sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Foresight Autonomous and Can Fite

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

The idea behind Foresight Autonomous Holdings and Can Fite Biopharma 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.