Correlation Between FG Group and Life Time
Can any of the company-specific risk be diversified away by investing in both FG Group and Life Time 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 FG Group and Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Group Holdings and Life Time Group, you can compare the effects of market volatilities on FG Group and Life Time 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 FG Group with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Group and Life Time.
Diversification Opportunities for FG Group and Life Time
Pay attention - limited upside
The 3 months correlation between FGH and Life is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Group Holdings and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group and FG Group 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 FG Group Holdings are associated (or correlated) with Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of FG Group i.e., FG Group and Life Time go up and down completely randomly.
Pair Corralation between FG Group and Life Time
If you would invest 1,681 in Life Time Group on November 27, 2024 and sell it today you would earn a total of 1,419 from holding Life Time Group or generate 84.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FG Group Holdings vs. Life Time Group
Performance |
| Timeline |
| FG Group Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Life Time Group |
FG Group and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Group and Life Time
The main advantage of trading using opposite FG Group and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Group position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| FG Group vs. OneSpaWorld Holdings | FG Group vs. Games Workshop Group | FG Group vs. Johnson Outdoors | FG Group vs. American Outdoor Brands |
| Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness | Life Time vs. Mattel Inc |
Check out your portfolio center.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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