Correlation Between Lifevantage and Latch
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Latch 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 Latch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Latch Inc, you can compare the effects of market volatilities on Lifevantage and Latch 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 Latch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Latch.
Diversification Opportunities for Lifevantage and Latch
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lifevantage and Latch is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Latch Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latch Inc 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 Latch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latch Inc has no effect on the direction of Lifevantage i.e., Lifevantage and Latch go up and down completely randomly.
Pair Corralation between Lifevantage and Latch
If you would invest 1,350 in Lifevantage on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Lifevantage or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Lifevantage vs. Latch Inc
Performance |
| Timeline |
| Lifevantage |
| Latch Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lifevantage and Latch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Latch
The main advantage of trading using opposite Lifevantage and Latch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Latch 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 Latch will offset losses from the drop in Latch's long position.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
| Latch vs. Evolution Gaming Group | Latch vs. Saia Inc | Latch vs. Verra Mobility Corp | Latch vs. The9 Ltd 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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