Correlation Between FitLife Brands, and Chijet
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Chijet 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 Chijet 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 Chijet Motor Company,, you can compare the effects of market volatilities on FitLife Brands, and Chijet 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 Chijet. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Chijet.
Diversification Opportunities for FitLife Brands, and Chijet
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FitLife and Chijet is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Chijet Motor Company, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chijet Motor , 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 Chijet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chijet Motor , has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Chijet go up and down completely randomly.
Pair Corralation between FitLife Brands, and Chijet
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.29 times more return on investment than Chijet. However, FitLife Brands, Common is 3.45 times less risky than Chijet. It trades about 0.09 of its potential returns per unit of risk. Chijet Motor Company, is currently generating about -0.05 per unit of risk. If you would invest 2,015 in FitLife Brands, Common on September 2, 2024 and sell it today you would earn a total of 1,358 from holding FitLife Brands, Common or generate 67.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Chijet Motor Company,
Performance |
| Timeline |
| FitLife Brands, Common |
| Chijet Motor , |
FitLife Brands, and Chijet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Chijet
The main advantage of trading using opposite FitLife Brands, and Chijet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Chijet 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 Chijet will offset losses from the drop in Chijet's long position.| FitLife Brands, vs. Seneca Foods Corp | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Lifeway Foods |
| Chijet vs. Franklin Street Properties | Chijet vs. United Homes Group | Chijet vs. Mid Atlantic Home Health | Chijet vs. Meli Hotels International |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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