Correlation Between FitLife Brands, and Avient Corp
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Avient Corp 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 Avient Corp 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 Avient Corp, you can compare the effects of market volatilities on FitLife Brands, and Avient Corp 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 Avient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Avient Corp.
Diversification Opportunities for FitLife Brands, and Avient Corp
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between FitLife and Avient is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Avient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avient Corp 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 Avient Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avient Corp has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Avient Corp go up and down completely randomly.
Pair Corralation between FitLife Brands, and Avient Corp
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.34 times more return on investment than Avient Corp. However, FitLife Brands, is 1.34 times more volatile than Avient Corp. It trades about 0.06 of its potential returns per unit of risk. Avient Corp is currently generating about 0.06 per unit of risk. If you would invest 1,700 in FitLife Brands, Common on August 30, 2024 and sell it today you would earn a total of 1,661 from holding FitLife Brands, Common or generate 97.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FitLife Brands, Common vs. Avient Corp
Performance |
| Timeline |
| FitLife Brands, Common |
| Avient Corp |
FitLife Brands, and Avient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Avient Corp
The main advantage of trading using opposite FitLife Brands, and Avient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Avient Corp 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 Avient Corp will offset losses from the drop in Avient Corp's long position.| FitLife Brands, vs. Kellanova | FitLife Brands, vs. Lamb Weston Holdings | FitLife Brands, vs. Borealis Foods | FitLife Brands, vs. Central Garden Pet |
| Avient Corp vs. Direxion Daily FTSE | Avient Corp vs. Collegium Pharmaceutical | Avient Corp vs. KKR Co LP | Avient Corp vs. iShares Dividend and |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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