Correlation Between Life Time and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Life Time and FactSet Research 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 Life Time and FactSet Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and FactSet Research Systems, you can compare the effects of market volatilities on Life Time and FactSet Research 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 Life Time with a short position of FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and FactSet Research.
Diversification Opportunities for Life Time and FactSet Research
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Life and FactSet is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems and Life Time 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 Life Time Group are associated (or correlated) with FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Life Time i.e., Life Time and FactSet Research go up and down completely randomly.
Pair Corralation between Life Time and FactSet Research
Considering the 90-day investment horizon Life Time Group is expected to under-perform the FactSet Research. In addition to that, Life Time is 1.37 times more volatile than FactSet Research Systems. It trades about -0.2 of its total potential returns per unit of risk. FactSet Research Systems is currently generating about 0.09 per unit of volatility. If you would invest 48,083 in FactSet Research Systems on September 12, 2024 and sell it today you would earn a total of 942.00 from holding FactSet Research Systems or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. FactSet Research Systems
Performance |
| Timeline |
| Life Time Group |
| FactSet Research Systems |
Life Time and FactSet Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and FactSet Research
The main advantage of trading using opposite Life Time and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.| Life Time vs. Planet Fitness | Life Time vs. Bowlero Corp | Life Time vs. JAKKS Pacific | Life Time vs. Acushnet Holdings Corp |
| FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |