Correlation Between FitLife Brands, and Banc Of
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Banc Of 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 Banc Of 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 Banc of California, you can compare the effects of market volatilities on FitLife Brands, and Banc Of 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 Banc Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Banc Of.
Diversification Opportunities for FitLife Brands, and Banc Of
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FitLife and Banc is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Banc of California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California 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 Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Banc Of go up and down completely randomly.
Pair Corralation between FitLife Brands, and Banc Of
Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the Banc Of. In addition to that, FitLife Brands, is 4.79 times more volatile than Banc of California. It trades about -0.09 of its total potential returns per unit of risk. Banc of California is currently generating about 0.19 per unit of volatility. If you would invest 2,419 in Banc of California on November 30, 2024 and sell it today you would earn a total of 98.00 from holding Banc of California or generate 4.05% 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. Banc of California
Performance |
| Timeline |
| FitLife Brands, Common |
| Banc of California |
FitLife Brands, and Banc Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Banc Of
The main advantage of trading using opposite FitLife Brands, and Banc Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Banc Of 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 Banc Of will offset losses from the drop in Banc Of's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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