Correlation Between FitLife Brands, and GCP Applied
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and GCP Applied 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 GCP Applied 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 GCP Applied Technologies, you can compare the effects of market volatilities on FitLife Brands, and GCP Applied 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 GCP Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and GCP Applied.
Diversification Opportunities for FitLife Brands, and GCP Applied
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FitLife and GCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and GCP Applied Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCP Applied Technologies 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 GCP Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCP Applied Technologies has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and GCP Applied go up and down completely randomly.
Pair Corralation between FitLife Brands, and GCP Applied
If you would invest (100.00) in GCP Applied Technologies on October 14, 2024 and sell it today you would earn a total of 100.00 from holding GCP Applied Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. GCP Applied Technologies
Performance |
| Timeline |
| FitLife Brands, Common |
| GCP Applied Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FitLife Brands, and GCP Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and GCP Applied
The main advantage of trading using opposite FitLife Brands, and GCP Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, GCP Applied 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 GCP Applied will offset losses from the drop in GCP Applied's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| GCP Applied vs. Cannae Holdings | GCP Applied vs. WPP PLC ADR | GCP Applied vs. Shake Shack | GCP Applied vs. Cracker Barrel Old |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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