Correlation Between FitLife Brands, and SPACE
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and SPACE 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 SPACE 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 SPACE, you can compare the effects of market volatilities on FitLife Brands, and SPACE 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 SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and SPACE.
Diversification Opportunities for FitLife Brands, and SPACE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and SPACE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE 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 SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and SPACE go up and down completely randomly.
Pair Corralation between FitLife Brands, and SPACE
Given the investment horizon of 90 days FitLife Brands, is expected to generate 9.87 times less return on investment than SPACE. But when comparing it to its historical volatility, FitLife Brands, Common is 2.3 times less risky than SPACE. It trades about 0.03 of its potential returns per unit of risk. SPACE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 35.00 in SPACE on August 28, 2024 and sell it today you would earn a total of 14.00 from holding SPACE or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
FitLife Brands, Common vs. SPACE
Performance |
| Timeline |
| FitLife Brands, Common |
| SPACE |
FitLife Brands, and SPACE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and SPACE
The main advantage of trading using opposite FitLife Brands, and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, SPACE 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 SPACE will offset losses from the drop in SPACE's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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