Correlation Between FitLife Brands, and Jackpot Digital
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Jackpot Digital 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 Jackpot Digital 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 Jackpot Digital, you can compare the effects of market volatilities on FitLife Brands, and Jackpot Digital 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 Jackpot Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Jackpot Digital.
Diversification Opportunities for FitLife Brands, and Jackpot Digital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between FitLife and Jackpot is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Jackpot Digital go up and down completely randomly.
Pair Corralation between FitLife Brands, and Jackpot Digital
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.81 times more return on investment than Jackpot Digital. However, FitLife Brands, Common is 1.23 times less risky than Jackpot Digital. It trades about 0.12 of its potential returns per unit of risk. Jackpot Digital is currently generating about -0.08 per unit of risk. If you would invest 3,165 in FitLife Brands, Common on September 1, 2024 and sell it today you would earn a total of 208.00 from holding FitLife Brands, Common or generate 6.57% 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. Jackpot Digital
Performance |
| Timeline |
| FitLife Brands, Common |
| Jackpot Digital |
FitLife Brands, and Jackpot Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Jackpot Digital
The main advantage of trading using opposite FitLife Brands, and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Jackpot Digital vs. Intema Solutions | Jackpot Digital vs. 888 Holdings | Jackpot Digital vs. Royal Wins | Jackpot Digital vs. Churchill Downs Incorporated |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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