Correlation Between FitLife Brands, and SP 500
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and SP 500 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 SP 500 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 SP 500 Energy, you can compare the effects of market volatilities on FitLife Brands, and SP 500 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 SP 500. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and SP 500.
Diversification Opportunities for FitLife Brands, and SP 500
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between FitLife and SPNY is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and SP 500 Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP 500 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 SP 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP 500 Energy has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and SP 500 go up and down completely randomly.
Pair Corralation between FitLife Brands, and SP 500
Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the SP 500. In addition to that, FitLife Brands, is 1.81 times more volatile than SP 500 Energy. It trades about -0.02 of its total potential returns per unit of risk. SP 500 Energy is currently generating about 0.09 per unit of volatility. If you would invest 64,907 in SP 500 Energy on September 12, 2024 and sell it today you would earn a total of 4,067 from holding SP 500 Energy or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
FitLife Brands, Common vs. SP 500 Energy
Performance |
| Timeline |
FitLife Brands, and SP 500 Volatility Contrast
Predicted Return Density |
| Returns |
FitLife Brands, Common
Pair trading matchups for FitLife Brands,
SP 500 Energy
Pair trading matchups for SP 500
Pair Trading with FitLife Brands, and SP 500
The main advantage of trading using opposite FitLife Brands, and SP 500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, SP 500 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 SP 500 will offset losses from the drop in SP 500's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| SP 500 vs. Barrick Gold Corp | SP 500 vs. Harmony Gold Mining | SP 500 vs. Analog Devices | SP 500 vs. FARO Technologies |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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