Correlation Between Lifevantage and Pinterest
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Pinterest 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 Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Pinterest, you can compare the effects of market volatilities on Lifevantage and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Pinterest.
Diversification Opportunities for Lifevantage and Pinterest
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifevantage and Pinterest is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Lifevantage i.e., Lifevantage and Pinterest go up and down completely randomly.
Pair Corralation between Lifevantage and Pinterest
Given the investment horizon of 90 days Lifevantage is expected to generate 0.86 times more return on investment than Pinterest. However, Lifevantage is 1.16 times less risky than Pinterest. It trades about 0.13 of its potential returns per unit of risk. Pinterest is currently generating about -0.06 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifevantage vs. Pinterest
Performance |
| Timeline |
| Lifevantage |
Lifevantage and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Pinterest
The main advantage of trading using opposite Lifevantage and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Stocks Directory module to find actively traded stocks across global markets.
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