Correlation Between FitLife Brands, and Surge Components
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Surge Components 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 Surge Components 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 Surge Components, you can compare the effects of market volatilities on FitLife Brands, and Surge Components 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 Surge Components. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Surge Components.
Diversification Opportunities for FitLife Brands, and Surge Components
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Surge is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Surge Components in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Components 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 Surge Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Components has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Surge Components go up and down completely randomly.
Pair Corralation between FitLife Brands, and Surge Components
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.02 times more return on investment than Surge Components. However, FitLife Brands, is 1.02 times more volatile than Surge Components. It trades about -0.02 of its potential returns per unit of risk. Surge Components is currently generating about -0.14 per unit of risk. If you would invest 3,256 in FitLife Brands, Common on August 24, 2024 and sell it today you would lose (55.00) from holding FitLife Brands, Common or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Surge Components
Performance |
| Timeline |
| FitLife Brands, Common |
| Surge Components |
FitLife Brands, and Surge Components Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Surge Components
The main advantage of trading using opposite FitLife Brands, and Surge Components positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Surge Components 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 Surge Components will offset losses from the drop in Surge Components' long position.| FitLife Brands, vs. Seneca Foods Corp | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Associated British Foods |
| Surge Components vs. Boxlight Corp Class | Surge Components vs. Siyata Mobile | Surge Components vs. ClearOne | Surge Components vs. HUMANA INC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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