Correlation Between NESNVX and Lifevantage
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By analyzing existing cross correlation between NESNVX 115 14 JAN 27 and Lifevantage, you can compare the effects of market volatilities on NESNVX and Lifevantage 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 NESNVX with a short position of Lifevantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of NESNVX and Lifevantage.
Diversification Opportunities for NESNVX and Lifevantage
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NESNVX and Lifevantage is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding NESNVX 115 14 JAN 27 and Lifevantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifevantage and NESNVX 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 NESNVX 115 14 JAN 27 are associated (or correlated) with Lifevantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifevantage has no effect on the direction of NESNVX i.e., NESNVX and Lifevantage go up and down completely randomly.
Pair Corralation between NESNVX and Lifevantage
Assuming the 90 days trading horizon NESNVX 115 14 JAN 27 is expected to under-perform the Lifevantage. But the bond apears to be less risky and, when comparing its historical volatility, NESNVX 115 14 JAN 27 is 3.59 times less risky than Lifevantage. The bond trades about -0.26 of its potential returns per unit of risk. The Lifevantage is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Lifevantage on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Lifevantage or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 50.0% |
| Values | Daily Returns |
NESNVX 115 14 JAN 27 vs. Lifevantage
Performance |
| Timeline |
| NESNVX 115 14 |
| Lifevantage |
NESNVX and Lifevantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NESNVX and Lifevantage
The main advantage of trading using opposite NESNVX and Lifevantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NESNVX position performs unexpectedly, Lifevantage 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 Lifevantage will offset losses from the drop in Lifevantage's long position.The idea behind NESNVX 115 14 JAN 27 and Lifevantage pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lifevantage vs. Seneca Foods Corp | Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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