Correlation Between Lifevantage and NCR Corp
Can any of the company-specific risk be diversified away by investing in both Lifevantage and NCR Corp 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 NCR Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and NCR Corp Pref, you can compare the effects of market volatilities on Lifevantage and NCR Corp 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 NCR Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and NCR Corp.
Diversification Opportunities for Lifevantage and NCR Corp
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifevantage and NCR is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and NCR Corp Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Corp Pref 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 NCR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Corp Pref has no effect on the direction of Lifevantage i.e., Lifevantage and NCR Corp go up and down completely randomly.
Pair Corralation between Lifevantage and NCR Corp
Given the investment horizon of 90 days Lifevantage is expected to generate 1.63 times more return on investment than NCR Corp. However, Lifevantage is 1.63 times more volatile than NCR Corp Pref. It trades about 0.09 of its potential returns per unit of risk. NCR Corp Pref is currently generating about 0.08 per unit of risk. If you would invest 473.00 in Lifevantage on September 4, 2024 and sell it today you would earn a total of 984.00 from holding Lifevantage or generate 208.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 48.92% |
| Values | Daily Returns |
Lifevantage vs. NCR Corp Pref
Performance |
| Timeline |
| Lifevantage |
| NCR Corp Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lifevantage and NCR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and NCR Corp
The main advantage of trading using opposite Lifevantage and NCR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, NCR Corp 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 NCR Corp will offset losses from the drop in NCR Corp's long position.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
| NCR Corp vs. Mesa Air Group | NCR Corp vs. Southwest Airlines | NCR Corp vs. CenterPoint Energy | NCR Corp vs. Archrock |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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