Correlation Between FitLife Brands, and Anterix
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Anterix 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 Anterix 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 Anterix, you can compare the effects of market volatilities on FitLife Brands, and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Anterix.
Diversification Opportunities for FitLife Brands, and Anterix
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FitLife and Anterix is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Anterix go up and down completely randomly.
Pair Corralation between FitLife Brands, and Anterix
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.32 times more return on investment than Anterix. However, FitLife Brands, is 1.32 times more volatile than Anterix. It trades about 0.09 of its potential returns per unit of risk. Anterix is currently generating about -0.01 per unit of risk. If you would invest 2,227 in FitLife Brands, Common on September 1, 2024 and sell it today you would earn a total of 1,146 from holding FitLife Brands, Common or generate 51.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Anterix
Performance |
| Timeline |
| FitLife Brands, Common |
| Anterix |
FitLife Brands, and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Anterix
The main advantage of trading using opposite FitLife Brands, and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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