Correlation Between FitLife Brands, and Travelers Companies
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Travelers Companies 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 Travelers Companies 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 The Travelers Companies, you can compare the effects of market volatilities on FitLife Brands, and Travelers Companies 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 Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Travelers Companies.
Diversification Opportunities for FitLife Brands, and Travelers Companies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Travelers is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and The Travelers Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Travelers Companies 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 Travelers Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Travelers Companies has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Travelers Companies go up and down completely randomly.
Pair Corralation between FitLife Brands, and Travelers Companies
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 1.96 times more return on investment than Travelers Companies. However, FitLife Brands, is 1.96 times more volatile than The Travelers Companies. It trades about 0.08 of its potential returns per unit of risk. The Travelers Companies is currently generating about 0.07 per unit of risk. If you would invest 2,247 in FitLife Brands, Common on August 27, 2024 and sell it today you would earn a total of 983.00 from holding FitLife Brands, Common or generate 43.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. The Travelers Companies
Performance |
| Timeline |
| FitLife Brands, Common |
| The Travelers Companies |
FitLife Brands, and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and Travelers Companies
The main advantage of trading using opposite FitLife Brands, and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Travelers Companies 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 Travelers Companies will offset losses from the drop in Travelers Companies' long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stocks Directory Find actively traded stocks across global markets |