Correlation Between FitLife Brands, and Artisan Consumer

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Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Artisan Consumer 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 Artisan Consumer 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 Artisan Consumer Goods, you can compare the effects of market volatilities on FitLife Brands, and Artisan Consumer 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 Artisan Consumer. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Artisan Consumer.

Diversification Opportunities for FitLife Brands, and Artisan Consumer

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between FitLife and Artisan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Artisan Consumer Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Consumer Goods 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 Artisan Consumer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Consumer Goods has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Artisan Consumer go up and down completely randomly.

Pair Corralation between FitLife Brands, and Artisan Consumer

Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.5 times more return on investment than Artisan Consumer. However, FitLife Brands, Common is 2.01 times less risky than Artisan Consumer. It trades about 0.15 of its potential returns per unit of risk. Artisan Consumer Goods is currently generating about -0.27 per unit of risk. If you would invest  3,125  in FitLife Brands, Common on August 29, 2024 and sell it today you would earn a total of  285.00  from holding FitLife Brands, Common or generate 9.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

FitLife Brands, Common  vs.  Artisan Consumer Goods

 Performance 
       Timeline  
FitLife Brands, Common 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in FitLife Brands, Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, FitLife Brands, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Artisan Consumer Goods 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Artisan Consumer Goods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively fragile basic indicators, Artisan Consumer may actually be approaching a critical reversion point that can send shares even higher in December 2024.

FitLife Brands, and Artisan Consumer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FitLife Brands, and Artisan Consumer

The main advantage of trading using opposite FitLife Brands, and Artisan Consumer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Artisan Consumer 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 Artisan Consumer will offset losses from the drop in Artisan Consumer's long position.
The idea behind FitLife Brands, Common and Artisan Consumer Goods 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 CEOs Directory module to screen CEOs from public companies around the world.

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