Correlation Between FitLife Brands, and Acco Brands
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Acco Brands 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 Acco Brands 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 Acco Brands, you can compare the effects of market volatilities on FitLife Brands, and Acco Brands 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 Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Acco Brands.
Diversification Opportunities for FitLife Brands, and Acco Brands
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FitLife and Acco is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands 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 Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Acco Brands go up and down completely randomly.
Pair Corralation between FitLife Brands, and Acco Brands
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.34 times more return on investment than Acco Brands. However, FitLife Brands, is 1.34 times more volatile than Acco Brands. It trades about 0.09 of its potential returns per unit of risk. Acco Brands is currently generating about 0.04 per unit of risk. If you would invest 1,917 in FitLife Brands, Common on August 26, 2024 and sell it today you would earn a total of 1,313 from holding FitLife Brands, Common or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Acco Brands
Performance |
| Timeline |
| FitLife Brands, Common |
| Acco Brands |
FitLife Brands, and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Acco Brands
The main advantage of trading using opposite FitLife Brands, and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Acco Brands 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 Acco Brands will offset losses from the drop in Acco Brands' long position.| FitLife Brands, vs. Honest Company | FitLife Brands, vs. Hims Hers Health | FitLife Brands, vs. Procter Gamble | FitLife Brands, vs. Kimberly Clark |
| Acco Brands vs. Park Electrochemical | Acco Brands vs. Innovative Solutions and | Acco Brands vs. Curtiss Wright | Acco Brands vs. National Presto Industries |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |