Correlation Between Lifevantage and Vestiage
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Vestiage 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 Vestiage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Vestiage, you can compare the effects of market volatilities on Lifevantage and Vestiage 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 Vestiage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Vestiage.
Diversification Opportunities for Lifevantage and Vestiage
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lifevantage and Vestiage is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Vestiage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestiage 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 Vestiage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestiage has no effect on the direction of Lifevantage i.e., Lifevantage and Vestiage go up and down completely randomly.
Pair Corralation between Lifevantage and Vestiage
Given the investment horizon of 90 days Lifevantage is expected to generate 11.12 times less return on investment than Vestiage. But when comparing it to its historical volatility, Lifevantage is 11.43 times less risky than Vestiage. It trades about 0.1 of its potential returns per unit of risk. Vestiage is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.10 in Vestiage on September 12, 2024 and sell it today you would earn a total of 7.80 from holding Vestiage or generate 371.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Lifevantage vs. Vestiage
Performance |
| Timeline |
| Lifevantage |
| Vestiage |
Lifevantage and Vestiage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifevantage and Vestiage
The main advantage of trading using opposite Lifevantage and Vestiage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Vestiage 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 Vestiage will offset losses from the drop in Vestiage's long position.| Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods | Lifevantage vs. Seneca Foods Corp |
| Vestiage vs. TFI International | Vestiage vs. SunOpta | Vestiage vs. Sun Country Airlines | Vestiage vs. Lifevantage |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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