Correlation Between FitLife Brands, and Integral
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Integral 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 Integral 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 Integral Ad Science, you can compare the effects of market volatilities on FitLife Brands, and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Integral.
Diversification Opportunities for FitLife Brands, and Integral
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between FitLife and Integral is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Integral go up and down completely randomly.
Pair Corralation between FitLife Brands, and Integral
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.72 times more return on investment than Integral. However, FitLife Brands, Common is 1.4 times less risky than Integral. It trades about 0.08 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.03 per unit of risk. If you would invest 2,243 in FitLife Brands, Common on August 25, 2024 and sell it today you would earn a total of 987.00 from holding FitLife Brands, Common or generate 44.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Integral Ad Science
Performance |
| Timeline |
| FitLife Brands, Common |
| Integral Ad Science |
FitLife Brands, and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Integral
The main advantage of trading using opposite FitLife Brands, and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| FitLife Brands, vs. Honest Company | FitLife Brands, vs. Hims Hers Health | FitLife Brands, vs. Procter Gamble | FitLife Brands, vs. Coty Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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