Correlation Between Luxfer Holdings and FitLife Brands,
Can any of the company-specific risk be diversified away by investing in both Luxfer Holdings and FitLife Brands, 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 Luxfer Holdings and FitLife Brands, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luxfer Holdings PLC and FitLife Brands, Common, you can compare the effects of market volatilities on Luxfer Holdings and FitLife Brands, 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 Luxfer Holdings with a short position of FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luxfer Holdings and FitLife Brands,.
Diversification Opportunities for Luxfer Holdings and FitLife Brands,
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luxfer and FitLife is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Luxfer Holdings PLC and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common and Luxfer Holdings 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 Luxfer Holdings PLC are associated (or correlated) with FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of Luxfer Holdings i.e., Luxfer Holdings and FitLife Brands, go up and down completely randomly.
Pair Corralation between Luxfer Holdings and FitLife Brands,
Given the investment horizon of 90 days Luxfer Holdings PLC is expected to generate 0.82 times more return on investment than FitLife Brands,. However, Luxfer Holdings PLC is 1.22 times less risky than FitLife Brands,. It trades about -0.01 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about -0.08 per unit of risk. If you would invest 1,467 in Luxfer Holdings PLC on November 1, 2024 and sell it today you would lose (23.00) from holding Luxfer Holdings PLC or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luxfer Holdings PLC vs. FitLife Brands, Common
Performance |
| Timeline |
| Luxfer Holdings PLC |
| FitLife Brands, Common |
Luxfer Holdings and FitLife Brands, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luxfer Holdings and FitLife Brands,
The main advantage of trading using opposite Luxfer Holdings and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luxfer Holdings position performs unexpectedly, FitLife Brands, 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 FitLife Brands, will offset losses from the drop in FitLife Brands,'s long position.| Luxfer Holdings vs. Graham | Luxfer Holdings vs. Enerpac Tool Group | Luxfer Holdings vs. Kadant Inc | Luxfer Holdings vs. Omega Flex |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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