Correlation Between FitLife Brands, and Abacus Life
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Abacus Life 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 Abacus Life 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 Abacus Life, you can compare the effects of market volatilities on FitLife Brands, and Abacus Life 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 Abacus Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Abacus Life.
Diversification Opportunities for FitLife Brands, and Abacus Life
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between FitLife and Abacus is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Abacus Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life 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 Abacus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Abacus Life go up and down completely randomly.
Pair Corralation between FitLife Brands, and Abacus Life
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.77 times more return on investment than Abacus Life. However, FitLife Brands, Common is 1.31 times less risky than Abacus Life. It trades about -0.05 of its potential returns per unit of risk. Abacus Life is currently generating about -0.06 per unit of risk. If you would invest 3,379 in FitLife Brands, Common on September 12, 2024 and sell it today you would lose (145.00) from holding FitLife Brands, Common or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Abacus Life
Performance |
| Timeline |
| FitLife Brands, Common |
| Abacus Life |
FitLife Brands, and Abacus Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Abacus Life
The main advantage of trading using opposite FitLife Brands, and Abacus Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Abacus Life 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 Abacus Life will offset losses from the drop in Abacus Life's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Abacus Life vs. FG Annuities Life | Abacus Life vs. Globe Life | Abacus Life vs. MetLife Preferred Stock | Abacus Life vs. MetLife Preferred Stock |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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