Correlation Between FitLife Brands, and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Siriuspoint 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 Siriuspoint 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 Siriuspoint, you can compare the effects of market volatilities on FitLife Brands, and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Siriuspoint.
Diversification Opportunities for FitLife Brands, and Siriuspoint
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between FitLife and Siriuspoint is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Siriuspoint go up and down completely randomly.
Pair Corralation between FitLife Brands, and Siriuspoint
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.65 times more return on investment than Siriuspoint. However, FitLife Brands, is 1.65 times more volatile than Siriuspoint. It trades about 0.08 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.09 per unit of risk. If you would invest 1,980 in FitLife Brands, Common on August 27, 2024 and sell it today you would earn a total of 1,250 from holding FitLife Brands, Common or generate 63.13% 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. Siriuspoint
Performance |
| Timeline |
| FitLife Brands, Common |
| Siriuspoint |
FitLife Brands, and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Siriuspoint
The main advantage of trading using opposite FitLife Brands, and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| FitLife Brands, vs. Honest Company | FitLife Brands, vs. Hims Hers Health | FitLife Brands, vs. Procter Gamble | FitLife Brands, vs. Kimberly Clark |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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