Correlation Between Lifevantage and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Sellas Life 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 Sellas Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Sellas Life Sciences, you can compare the effects of market volatilities on Lifevantage and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Sellas Life.
Diversification Opportunities for Lifevantage and Sellas Life
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lifevantage and Sellas is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Lifevantage i.e., Lifevantage and Sellas Life go up and down completely randomly.
Pair Corralation between Lifevantage and Sellas Life
Given the investment horizon of 90 days Lifevantage is expected to generate 0.85 times more return on investment than Sellas Life. However, Lifevantage is 1.18 times less risky than Sellas Life. It trades about 0.1 of its potential returns per unit of risk. Sellas Life Sciences is currently generating about 0.02 per unit of risk. If you would invest 315.00 in Lifevantage on November 28, 2024 and sell it today you would earn a total of 1,407 from holding Lifevantage or generate 446.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifevantage vs. Sellas Life Sciences
Performance |
| Timeline |
| Lifevantage |
| Sellas Life Sciences |
Lifevantage and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Sellas Life
The main advantage of trading using opposite Lifevantage and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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