Correlation Between FitLife Brands, and CarsalesCom
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and CarsalesCom 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 CarsalesCom 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 CarsalesCom Ltd ADR, you can compare the effects of market volatilities on FitLife Brands, and CarsalesCom 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 CarsalesCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and CarsalesCom.
Diversification Opportunities for FitLife Brands, and CarsalesCom
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FitLife and CarsalesCom is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and CarsalesCom Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CarsalesCom ADR 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 CarsalesCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CarsalesCom ADR has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and CarsalesCom go up and down completely randomly.
Pair Corralation between FitLife Brands, and CarsalesCom
Given the investment horizon of 90 days FitLife Brands, is expected to generate 1.01 times less return on investment than CarsalesCom. In addition to that, FitLife Brands, is 1.16 times more volatile than CarsalesCom Ltd ADR. It trades about 0.07 of its total potential returns per unit of risk. CarsalesCom Ltd ADR is currently generating about 0.08 per unit of volatility. If you would invest 2,829 in CarsalesCom Ltd ADR on September 3, 2024 and sell it today you would earn a total of 2,670 from holding CarsalesCom Ltd ADR or generate 94.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.25% |
| Values | Daily Returns |
FitLife Brands, Common vs. CarsalesCom Ltd ADR
Performance |
| Timeline |
| FitLife Brands, Common |
| CarsalesCom ADR |
FitLife Brands, and CarsalesCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and CarsalesCom
The main advantage of trading using opposite FitLife Brands, and CarsalesCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, CarsalesCom 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 CarsalesCom will offset losses from the drop in CarsalesCom's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| CarsalesCom vs. Quizam Media | CarsalesCom vs. DGTL Holdings | CarsalesCom vs. Tinybeans Group Limited | CarsalesCom vs. Sabio Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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