Correlation Between FitLife Brands, and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Electrovaya Common 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 Electrovaya Common 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 Electrovaya Common Shares, you can compare the effects of market volatilities on FitLife Brands, and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Electrovaya Common.
Diversification Opportunities for FitLife Brands, and Electrovaya Common
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Electrovaya is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Electrovaya Common go up and down completely randomly.
Pair Corralation between FitLife Brands, and Electrovaya Common
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.73 times more return on investment than Electrovaya Common. However, FitLife Brands, Common is 1.37 times less risky than Electrovaya Common. It trades about 0.07 of its potential returns per unit of risk. Electrovaya Common Shares is currently generating about -0.01 per unit of risk. If you would invest 1,630 in FitLife Brands, Common on August 28, 2024 and sell it today you would earn a total of 1,782 from holding FitLife Brands, Common or generate 109.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FitLife Brands, Common vs. Electrovaya Common Shares
Performance |
| Timeline |
| FitLife Brands, Common |
| Electrovaya Common Shares |
FitLife Brands, and Electrovaya Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Electrovaya Common
The main advantage of trading using opposite FitLife Brands, and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Electrovaya Common vs. Bloom Energy Corp | Electrovaya Common vs. Eos Energy Enterprises | Electrovaya Common vs. Sunrise New Energy | Electrovaya Common vs. GrafTech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |