Correlation Between Lifevantage and Atlantic American
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Atlantic American 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 Lifevantage and Atlantic American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Atlantic American, you can compare the effects of market volatilities on Lifevantage and Atlantic American 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 Lifevantage with a short position of Atlantic American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Atlantic American.
Diversification Opportunities for Lifevantage and Atlantic American
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lifevantage and Atlantic is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Atlantic American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic American and Lifevantage 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 Lifevantage are associated (or correlated) with Atlantic American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic American has no effect on the direction of Lifevantage i.e., Lifevantage and Atlantic American go up and down completely randomly.
Pair Corralation between Lifevantage and Atlantic American
Given the investment horizon of 90 days Lifevantage is expected to generate 1.41 times more return on investment than Atlantic American. However, Lifevantage is 1.41 times more volatile than Atlantic American. It trades about 0.25 of its potential returns per unit of risk. Atlantic American is currently generating about -0.07 per unit of risk. If you would invest 1,196 in Lifevantage on September 19, 2024 and sell it today you would earn a total of 519.00 from holding Lifevantage or generate 43.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Lifevantage vs. Atlantic American
Performance |
| Timeline |
| Lifevantage |
| Atlantic American |
Lifevantage and Atlantic American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Atlantic American
The main advantage of trading using opposite Lifevantage and Atlantic American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Atlantic American 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 Atlantic American will offset losses from the drop in Atlantic American's long position.| Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods | Lifevantage vs. Seneca Foods Corp |
| Atlantic American vs. CNO Financial Group | Atlantic American vs. MetLife Preferred Stock | Atlantic American vs. FG Annuities Life | Atlantic American vs. Prudential PLC ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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