Correlation Between FitLife Brands, and Seaport Entertainment
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Seaport Entertainment 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 Seaport Entertainment 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 Seaport Entertainment Group, you can compare the effects of market volatilities on FitLife Brands, and Seaport Entertainment 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 Seaport Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Seaport Entertainment.
Diversification Opportunities for FitLife Brands, and Seaport Entertainment
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between FitLife and Seaport is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Seaport Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seaport Entertainment 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 Seaport Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seaport Entertainment has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Seaport Entertainment go up and down completely randomly.
Pair Corralation between FitLife Brands, and Seaport Entertainment
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.65 times more return on investment than Seaport Entertainment. However, FitLife Brands, Common is 1.54 times less risky than Seaport Entertainment. It trades about 0.06 of its potential returns per unit of risk. Seaport Entertainment Group is currently generating about 0.03 per unit of risk. If you would invest 2,793 in FitLife Brands, Common on September 5, 2024 and sell it today you would earn a total of 505.00 from holding FitLife Brands, Common or generate 18.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.8% |
| Values | Daily Returns |
FitLife Brands, Common vs. Seaport Entertainment Group
Performance |
| Timeline |
| FitLife Brands, Common |
| Seaport Entertainment |
FitLife Brands, and Seaport Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Seaport Entertainment
The main advantage of trading using opposite FitLife Brands, and Seaport Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Seaport Entertainment 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 Seaport Entertainment will offset losses from the drop in Seaport Entertainment's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Seaport Entertainment vs. FitLife Brands, Common | Seaport Entertainment vs. Bridgford Foods | Seaport Entertainment vs. Academy Sports Outdoors | Seaport Entertainment vs. Verra Mobility Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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