Correlation Between FitLife Brands, and Nations VolDex
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Nations VolDex 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 Nations VolDex 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 Nations VolDex, you can compare the effects of market volatilities on FitLife Brands, and Nations VolDex 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 Nations VolDex. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Nations VolDex.
Diversification Opportunities for FitLife Brands, and Nations VolDex
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FitLife and Nations is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Nations VolDex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations VolDex 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 Nations VolDex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations VolDex has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Nations VolDex go up and down completely randomly.
Pair Corralation between FitLife Brands, and Nations VolDex
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.56 times more return on investment than Nations VolDex. However, FitLife Brands, Common is 1.79 times less risky than Nations VolDex. It trades about -0.06 of its potential returns per unit of risk. Nations VolDex is currently generating about -0.13 per unit of risk. If you would invest 3,379 in FitLife Brands, Common on September 12, 2024 and sell it today you would lose (169.00) from holding FitLife Brands, Common or give up 5.0% 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. Nations VolDex
Performance |
| Timeline |
FitLife Brands, and Nations VolDex Volatility Contrast
Predicted Return Density |
| Returns |
FitLife Brands, Common
Pair trading matchups for FitLife Brands,
Nations VolDex
Pair trading matchups for Nations VolDex
Pair Trading with FitLife Brands, and Nations VolDex
The main advantage of trading using opposite FitLife Brands, and Nations VolDex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, Nations VolDex 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 Nations VolDex will offset losses from the drop in Nations VolDex's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| Nations VolDex vs. Highway Holdings Limited | Nations VolDex vs. Brenmiller Energy Ltd | Nations VolDex vs. Summit Materials | Nations VolDex vs. Stepan Company |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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