Correlation Between FitLife Brands, and Cable One
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Cable One 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 Cable One 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 Cable One, you can compare the effects of market volatilities on FitLife Brands, and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Cable One.
Diversification Opportunities for FitLife Brands, and Cable One
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FitLife and Cable is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Cable One go up and down completely randomly.
Pair Corralation between FitLife Brands, and Cable One
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.9 times more return on investment than Cable One. However, FitLife Brands, Common is 1.11 times less risky than Cable One. It trades about -0.13 of its potential returns per unit of risk. Cable One is currently generating about -0.21 per unit of risk. If you would invest 1,624 in FitLife Brands, Common on November 18, 2024 and sell it today you would lose (109.00) from holding FitLife Brands, Common or give up 6.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Cable One
Performance |
| Timeline |
| FitLife Brands, Common |
| Cable One |
FitLife Brands, and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Cable One
The main advantage of trading using opposite FitLife Brands, and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Cable One vs. Liberty Broadband Srs | Cable One vs. Liberty Broadband Corp | Cable One vs. Telkom Indonesia Tbk | Cable One vs. Liberty Global PLC |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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