Correlation Between FitLife Brands, and Flexible Solutions
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Flexible Solutions 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 Flexible Solutions 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 Flexible Solutions International, you can compare the effects of market volatilities on FitLife Brands, and Flexible Solutions 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 Flexible Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Flexible Solutions.
Diversification Opportunities for FitLife Brands, and Flexible Solutions
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Flexible is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Flexible Solutions Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexible Solutions 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 Flexible Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexible Solutions has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Flexible Solutions go up and down completely randomly.
Pair Corralation between FitLife Brands, and Flexible Solutions
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.78 times more return on investment than Flexible Solutions. However, FitLife Brands, Common is 1.29 times less risky than Flexible Solutions. It trades about 0.07 of its potential returns per unit of risk. Flexible Solutions International is currently generating about 0.03 per unit of risk. If you would invest 1,685 in FitLife Brands, Common on September 2, 2024 and sell it today you would earn a total of 1,688 from holding FitLife Brands, Common or generate 100.18% 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. Flexible Solutions Internation
Performance |
| Timeline |
| FitLife Brands, Common |
| Flexible Solutions |
FitLife Brands, and Flexible Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Flexible Solutions
The main advantage of trading using opposite FitLife Brands, and Flexible Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Flexible Solutions 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 Flexible Solutions will offset losses from the drop in Flexible Solutions' 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 |
| Flexible Solutions vs. Orion Engineered Carbons | Flexible Solutions vs. International Flavors Fragrances | Flexible Solutions vs. Sociedad Quimica y | Flexible Solutions vs. Albemarle Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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