Correlation Between Neogen and Life Time
Can any of the company-specific risk be diversified away by investing in both Neogen and Life Time 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 Neogen and Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neogen and Life Time Group, you can compare the effects of market volatilities on Neogen and Life Time 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 Neogen with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neogen and Life Time.
Diversification Opportunities for Neogen and Life Time
Modest diversification
The 3 months correlation between Neogen and Life is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Neogen and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group and Neogen 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 Neogen are associated (or correlated) with Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Neogen i.e., Neogen and Life Time go up and down completely randomly.
Pair Corralation between Neogen and Life Time
Given the investment horizon of 90 days Neogen is expected to under-perform the Life Time. In addition to that, Neogen is 1.35 times more volatile than Life Time Group. It trades about -0.08 of its total potential returns per unit of risk. Life Time Group is currently generating about -0.09 per unit of volatility. If you would invest 2,567 in Life Time Group on September 13, 2024 and sell it today you would lose (235.00) from holding Life Time Group or give up 9.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neogen vs. Life Time Group
Performance |
| Timeline |
| Neogen |
| Life Time Group |
Neogen and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neogen and Life Time
The main advantage of trading using opposite Neogen and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neogen position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Neogen vs. Avita Medical | Neogen vs. Sight Sciences | Neogen vs. Treace Medical Concepts | Neogen vs. Neuropace |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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