Correlation Between FitLife Brands, and Oak Woods
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Oak Woods 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 Oak Woods 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 Oak Woods Acquisition, you can compare the effects of market volatilities on FitLife Brands, and Oak Woods 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 Oak Woods. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Oak Woods.
Diversification Opportunities for FitLife Brands, and Oak Woods
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Oak is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Oak Woods Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Woods Acquisition 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 Oak Woods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Woods Acquisition has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Oak Woods go up and down completely randomly.
Pair Corralation between FitLife Brands, and Oak Woods
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 16.49 times more return on investment than Oak Woods. However, FitLife Brands, is 16.49 times more volatile than Oak Woods Acquisition. It trades about 0.15 of its potential returns per unit of risk. Oak Woods Acquisition is currently generating about 0.46 per unit of risk. If you would invest 3,125 in FitLife Brands, Common on August 28, 2024 and sell it today you would earn a total of 287.00 from holding FitLife Brands, Common or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FitLife Brands, Common vs. Oak Woods Acquisition
Performance |
| Timeline |
| FitLife Brands, Common |
| Oak Woods Acquisition |
FitLife Brands, and Oak Woods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Oak Woods
The main advantage of trading using opposite FitLife Brands, and Oak Woods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Oak Woods 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 Oak Woods will offset losses from the drop in Oak Woods' long position.| FitLife Brands, vs. Hims Hers Health | FitLife Brands, vs. Procter Gamble | FitLife Brands, vs. Kimberly Clark | FitLife Brands, vs. Colgate Palmolive |
| Oak Woods vs. Grocery Outlet Holding | Oak Woods vs. FitLife Brands, Common | Oak Woods vs. Radcom | Oak Woods vs. Tyson Foods |
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.
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