Correlation Between FitLife Brands, and Amer Sports,
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Amer Sports, 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 Amer Sports, 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 Amer Sports,, you can compare the effects of market volatilities on FitLife Brands, and Amer Sports, 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 Amer Sports,. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Amer Sports,.
Diversification Opportunities for FitLife Brands, and Amer Sports,
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Amer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, 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 Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Amer Sports, go up and down completely randomly.
Pair Corralation between FitLife Brands, and Amer Sports,
Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the Amer Sports,. But the stock apears to be less risky and, when comparing its historical volatility, FitLife Brands, Common is 1.22 times less risky than Amer Sports,. The stock trades about -0.13 of its potential returns per unit of risk. The Amer Sports, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,976 in Amer Sports, on November 18, 2024 and sell it today you would earn a total of 123.00 from holding Amer Sports, or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Amer Sports,
Performance |
| Timeline |
| FitLife Brands, Common |
| Amer Sports, |
FitLife Brands, and Amer Sports, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Amer Sports,
The main advantage of trading using opposite FitLife Brands, and Amer Sports, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Amer Sports, 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 Amer Sports, will offset losses from the drop in Amer Sports,'s long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Amer Sports, vs. Summit Midstream | Amer Sports, vs. Kinetik Holdings | Amer Sports, vs. Federal Home Loan | Amer Sports, vs. CenterPoint Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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