Correlation Between FitLife Brands, and Gold Fields
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Gold Fields 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 Gold Fields 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 Gold Fields Ltd, you can compare the effects of market volatilities on FitLife Brands, and Gold Fields 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 Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Gold Fields.
Diversification Opportunities for FitLife Brands, and Gold Fields
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FitLife and Gold is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Gold Fields Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields 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 Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Gold Fields go up and down completely randomly.
Pair Corralation between FitLife Brands, and Gold Fields
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.71 times more return on investment than Gold Fields. However, FitLife Brands, Common is 1.4 times less risky than Gold Fields. It trades about 0.01 of its potential returns per unit of risk. Gold Fields Ltd is currently generating about -0.01 per unit of risk. If you would invest 3,246 in FitLife Brands, Common on August 26, 2024 and sell it today you would lose (16.00) from holding FitLife Brands, Common or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Gold Fields Ltd
Performance |
| Timeline |
| FitLife Brands, Common |
| Gold Fields |
FitLife Brands, and Gold Fields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Gold Fields
The main advantage of trading using opposite FitLife Brands, and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.| FitLife Brands, vs. Honest Company | FitLife Brands, vs. Hims Hers Health | FitLife Brands, vs. Procter Gamble | FitLife Brands, vs. Kimberly Clark |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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