Correlation Between FitLife Brands, and Grow Solutions
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Grow 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 Grow 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 Grow Solutions Holdings, you can compare the effects of market volatilities on FitLife Brands, and Grow 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 Grow Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Grow Solutions.
Diversification Opportunities for FitLife Brands, and Grow Solutions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FitLife and Grow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Grow Solutions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grow Solutions Holdings 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 Grow Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grow Solutions Holdings has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Grow Solutions go up and down completely randomly.
Pair Corralation between FitLife Brands, and Grow Solutions
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.59 times more return on investment than Grow Solutions. However, FitLife Brands, Common is 1.69 times less risky than Grow Solutions. It trades about 0.06 of its potential returns per unit of risk. Grow Solutions Holdings is currently generating about -0.04 per unit of risk. If you would invest 1,700 in FitLife Brands, Common on August 30, 2024 and sell it today you would earn a total of 1,661 from holding FitLife Brands, Common or generate 97.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FitLife Brands, Common vs. Grow Solutions Holdings
Performance |
| Timeline |
| FitLife Brands, Common |
| Grow Solutions Holdings |
FitLife Brands, and Grow Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Grow Solutions
The main advantage of trading using opposite FitLife Brands, and Grow Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Grow 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 Grow Solutions will offset losses from the drop in Grow Solutions' long position.| FitLife Brands, vs. Kellanova | FitLife Brands, vs. Lamb Weston Holdings | FitLife Brands, vs. Borealis Foods | FitLife Brands, vs. Central Garden Pet |
| Grow Solutions vs. Buhler Industries | Grow Solutions vs. Austin Engineering Limited | Grow Solutions vs. Ag Growth International | Grow Solutions vs. Textainer Group 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |