Correlation Between FitLife Brands, and Jadeart
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Jadeart 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 Jadeart 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 Jadeart Group, you can compare the effects of market volatilities on FitLife Brands, and Jadeart 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 Jadeart. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Jadeart.
Diversification Opportunities for FitLife Brands, and Jadeart
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between FitLife and Jadeart is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Jadeart Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadeart Group 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 Jadeart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadeart Group has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Jadeart go up and down completely randomly.
Pair Corralation between FitLife Brands, and Jadeart
Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the Jadeart. But the stock apears to be less risky and, when comparing its historical volatility, FitLife Brands, Common is 9.05 times less risky than Jadeart. The stock trades about -0.13 of its potential returns per unit of risk. The Jadeart Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.43 in Jadeart Group on January 16, 2025 and sell it today you would lose (0.19) from holding Jadeart Group or give up 44.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
FitLife Brands, Common vs. Jadeart Group
Performance |
| Timeline |
| FitLife Brands, Common |
| Jadeart Group |
FitLife Brands, and Jadeart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Jadeart
The main advantage of trading using opposite FitLife Brands, and Jadeart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Jadeart 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 Jadeart will offset losses from the drop in Jadeart's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Jadeart vs. China Sun Grp | Jadeart vs. Lotus Pharmaceuticals | Jadeart vs. China Medicine | Jadeart vs. China Clean Energy |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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