Correlation Between Life Time and Tiger Reef
Can any of the company-specific risk be diversified away by investing in both Life Time and Tiger Reef 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 Tiger Reef 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 Tiger Reef, you can compare the effects of market volatilities on Life Time and Tiger Reef 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 Tiger Reef. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Tiger Reef.
Diversification Opportunities for Life Time and Tiger Reef
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Life and Tiger is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Tiger Reef in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiger Reef 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 Tiger Reef. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiger Reef has no effect on the direction of Life Time i.e., Life Time and Tiger Reef go up and down completely randomly.
Pair Corralation between Life Time and Tiger Reef
If you would invest 0.01 in Tiger Reef on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Tiger Reef or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. Tiger Reef
Performance |
| Timeline |
| Life Time Group |
| Tiger Reef |
Life Time and Tiger Reef Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Tiger Reef
The main advantage of trading using opposite Life Time and Tiger Reef positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, Tiger Reef 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 Tiger Reef will offset losses from the drop in Tiger Reef's long position.| Life Time vs. Planet Fitness | Life Time vs. Bowlero Corp | Life Time vs. JAKKS Pacific | Life Time vs. Acushnet Holdings Corp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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