Correlation Between FitLife Brands, and XChange TECINC
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and XChange TECINC 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 XChange TECINC 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 XChange TECINC, you can compare the effects of market volatilities on FitLife Brands, and XChange TECINC 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 XChange TECINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and XChange TECINC.
Diversification Opportunities for FitLife Brands, and XChange TECINC
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FitLife and XChange is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and XChange TECINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XChange TECINC 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 XChange TECINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XChange TECINC has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and XChange TECINC go up and down completely randomly.
Pair Corralation between FitLife Brands, and XChange TECINC
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.17 times more return on investment than XChange TECINC. However, FitLife Brands, Common is 5.8 times less risky than XChange TECINC. It trades about 0.06 of its potential returns per unit of risk. XChange TECINC is currently generating about -0.03 per unit of risk. If you would invest 1,650 in FitLife Brands, Common on September 12, 2024 and sell it today you would earn a total of 1,584 from holding FitLife Brands, Common or generate 96.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
FitLife Brands, Common vs. XChange TECINC
Performance |
| Timeline |
| FitLife Brands, Common |
| XChange TECINC |
FitLife Brands, and XChange TECINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and XChange TECINC
The main advantage of trading using opposite FitLife Brands, and XChange TECINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, XChange TECINC 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 XChange TECINC will offset losses from the drop in XChange TECINC's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
| XChange TECINC vs. FitLife Brands, Common | XChange TECINC vs. AMCON Distributing | XChange TECINC vs. Bridgford Foods | XChange TECINC vs. NH Foods Ltd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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