Correlation Between FitLife Brands, and Thor Industries
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Thor Industries 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 Thor Industries 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 Thor Industries, you can compare the effects of market volatilities on FitLife Brands, and Thor Industries 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 Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Thor Industries.
Diversification Opportunities for FitLife Brands, and Thor Industries
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between FitLife and Thor is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries 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 Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Thor Industries go up and down completely randomly.
Pair Corralation between FitLife Brands, and Thor Industries
Given the investment horizon of 90 days FitLife Brands, is expected to generate 1.02 times less return on investment than Thor Industries. In addition to that, FitLife Brands, is 1.44 times more volatile than Thor Industries. It trades about 0.11 of its total potential returns per unit of risk. Thor Industries is currently generating about 0.16 per unit of volatility. If you would invest 10,458 in Thor Industries on September 2, 2024 and sell it today you would earn a total of 702.00 from holding Thor Industries or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. Thor Industries
Performance |
| Timeline |
| FitLife Brands, Common |
| Thor Industries |
FitLife Brands, and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Thor Industries
The main advantage of trading using opposite FitLife Brands, and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Thor Industries 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 Thor Industries will offset losses from the drop in Thor Industries' long position.| FitLife Brands, vs. Seneca Foods Corp | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Central Garden Pet | FitLife Brands, vs. Lifeway Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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