Correlation Between FitLife Brands, and China Foods
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and China Foods 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 China Foods 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 China Foods Holdings, you can compare the effects of market volatilities on FitLife Brands, and China Foods 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 China Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and China Foods.
Diversification Opportunities for FitLife Brands, and China Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FitLife and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and China Foods Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Foods Holdings 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 China Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Foods Holdings has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and China Foods go up and down completely randomly.
Pair Corralation between FitLife Brands, and China Foods
If you would invest 3,142 in FitLife Brands, Common on August 31, 2024 and sell it today you would earn a total of 231.00 from holding FitLife Brands, Common or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. China Foods Holdings
Performance |
| Timeline |
| FitLife Brands, Common |
| China Foods Holdings |
FitLife Brands, and China Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and China Foods
The main advantage of trading using opposite FitLife Brands, and China Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, China Foods 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 China Foods will offset losses from the drop in China Foods' long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| China Foods vs. The A2 Milk | China Foods vs. Altavoz Entertainment | China Foods vs. Artisan Consumer Goods | China Foods vs. General Mills |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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