Correlation Between Nautilus and Life Time
Can any of the company-specific risk be diversified away by investing in both Nautilus 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 Nautilus and Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nautilus Group and Life Time Group, you can compare the effects of market volatilities on Nautilus 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 Nautilus with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nautilus and Life Time.
Diversification Opportunities for Nautilus and Life Time
Average diversification
The 3 months correlation between Nautilus and Life is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nautilus Group 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 Nautilus 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 Nautilus Group 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 Nautilus i.e., Nautilus and Life Time go up and down completely randomly.
Pair Corralation between Nautilus and Life Time
Considering the 90-day investment horizon Nautilus Group is expected to under-perform the Life Time. In addition to that, Nautilus is 1.2 times more volatile than Life Time Group. It trades about -0.05 of its total potential returns per unit of risk. Life Time Group is currently generating about 0.06 per unit of volatility. If you would invest 1,347 in Life Time Group on September 3, 2024 and sell it today you would earn a total of 1,080 from holding Life Time Group or generate 80.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
Nautilus Group vs. Life Time Group
Performance |
| Timeline |
| Nautilus Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Life Time Group |
Nautilus and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nautilus and Life Time
The main advantage of trading using opposite Nautilus and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nautilus 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.| Nautilus vs. Xponential Fitness | Nautilus vs. Life Time Group | Nautilus vs. Mattel Inc | Nautilus vs. Bowlero Corp |
| Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Mattel Inc | Life Time vs. OneSpaWorld Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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