Correlation Between FitLife Brands, and Asbury Automotive
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Asbury Automotive 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 FitLife Brands, and Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FitLife Brands, Common and Asbury Automotive Group, you can compare the effects of market volatilities on FitLife Brands, and Asbury Automotive 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 FitLife Brands, with a short position of Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Asbury Automotive.
Diversification Opportunities for FitLife Brands, and Asbury Automotive
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FitLife and Asbury is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive and FitLife Brands, 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 FitLife Brands, Common are associated (or correlated) with Asbury Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asbury Automotive has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Asbury Automotive go up and down completely randomly.
Pair Corralation between FitLife Brands, and Asbury Automotive
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.13 times more return on investment than Asbury Automotive. However, FitLife Brands, is 1.13 times more volatile than Asbury Automotive Group. It trades about 0.06 of its potential returns per unit of risk. Asbury Automotive Group is currently generating about 0.05 per unit of risk. If you would invest 1,625 in FitLife Brands, Common on August 24, 2024 and sell it today you would earn a total of 1,576 from holding FitLife Brands, Common or generate 96.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FitLife Brands, Common vs. Asbury Automotive Group
Performance |
| Timeline |
| FitLife Brands, Common |
| Asbury Automotive |
FitLife Brands, and Asbury Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Asbury Automotive
The main advantage of trading using opposite FitLife Brands, and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Asbury Automotive 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 Asbury Automotive will offset losses from the drop in Asbury Automotive's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |