Correlation Between FitLife Brands, and Shoprite Holdings
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Shoprite Holdings 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 Shoprite Holdings 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 Shoprite Holdings Limited, you can compare the effects of market volatilities on FitLife Brands, and Shoprite Holdings 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 Shoprite Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Shoprite Holdings.
Diversification Opportunities for FitLife Brands, and Shoprite Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between FitLife and Shoprite is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Shoprite Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoprite Holdings 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 Shoprite Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoprite Holdings has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Shoprite Holdings go up and down completely randomly.
Pair Corralation between FitLife Brands, and Shoprite Holdings
If you would invest 3,150 in FitLife Brands, Common on August 30, 2024 and sell it today you would earn a total of 211.00 from holding FitLife Brands, Common or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
FitLife Brands, Common vs. Shoprite Holdings Limited
Performance |
| Timeline |
| FitLife Brands, Common |
| Shoprite Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
FitLife Brands, and Shoprite Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Shoprite Holdings
The main advantage of trading using opposite FitLife Brands, and Shoprite Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Shoprite Holdings 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 Shoprite Holdings will offset losses from the drop in Shoprite Holdings' long position.| FitLife Brands, vs. ELF Beauty | FitLife Brands, vs. Procter Gamble | FitLife Brands, vs. Colgate Palmolive | FitLife Brands, vs. Kenvue Inc |
| Shoprite Holdings vs. Boston Omaha Corp | Shoprite Holdings vs. Organic Sales and | Shoprite Holdings vs. Entravision Communications | Shoprite Holdings vs. Marchex |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |