Correlation Between FitLife Brands, and Patterson UTI
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Patterson UTI 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 Patterson UTI 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 Patterson UTI Energy, you can compare the effects of market volatilities on FitLife Brands, and Patterson UTI 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 Patterson UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Patterson UTI.
Diversification Opportunities for FitLife Brands, and Patterson UTI
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FitLife and Patterson is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy 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 Patterson UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Patterson UTI go up and down completely randomly.
Pair Corralation between FitLife Brands, and Patterson UTI
Given the investment horizon of 90 days FitLife Brands, is expected to generate 1.67 times less return on investment than Patterson UTI. But when comparing it to its historical volatility, FitLife Brands, Common is 1.08 times less risky than Patterson UTI. It trades about 0.09 of its potential returns per unit of risk. Patterson UTI Energy is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 754.00 in Patterson UTI Energy on September 5, 2024 and sell it today you would earn a total of 66.00 from holding Patterson UTI Energy or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Patterson UTI Energy
Performance |
| Timeline |
| FitLife Brands, Common |
| Patterson UTI Energy |
FitLife Brands, and Patterson UTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Patterson UTI
The main advantage of trading using opposite FitLife Brands, and Patterson UTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Patterson UTI 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 Patterson UTI will offset losses from the drop in Patterson UTI's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
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.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |