Correlation Between Lifevantage and Above Food
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Above Food 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 Above Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Above Food Ingredients, you can compare the effects of market volatilities on Lifevantage and Above Food 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 Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Above Food.
Diversification Opportunities for Lifevantage and Above Food
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lifevantage and Above is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients 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 Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of Lifevantage i.e., Lifevantage and Above Food go up and down completely randomly.
Pair Corralation between Lifevantage and Above Food
Given the investment horizon of 90 days Lifevantage is expected to generate 0.74 times more return on investment than Above Food. However, Lifevantage is 1.35 times less risky than Above Food. It trades about 0.3 of its potential returns per unit of risk. Above Food Ingredients is currently generating about 0.06 per unit of risk. If you would invest 1,635 in Lifevantage on October 24, 2024 and sell it today you would earn a total of 713.00 from holding Lifevantage or generate 43.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Lifevantage vs. Above Food Ingredients
Performance |
| Timeline |
| Lifevantage |
| Above Food Ingredients |
Lifevantage and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Above Food
The main advantage of trading using opposite Lifevantage and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food's long position.| Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods | Lifevantage vs. Seneca Foods Corp |
| Above Food vs. Cars Inc | Above Food vs. Aptiv PLC | Above Food vs. Triumph Apparel | Above Food vs. Ralph Lauren Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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