Correlation Between YETI Holdings and Life Time
Can any of the company-specific risk be diversified away by investing in both YETI Holdings 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 YETI Holdings and Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YETI Holdings and Life Time Group, you can compare the effects of market volatilities on YETI Holdings 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 YETI Holdings with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of YETI Holdings and Life Time.
Diversification Opportunities for YETI Holdings and Life Time
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between YETI and Life is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding YETI Holdings 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 YETI 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 YETI Holdings 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 YETI Holdings i.e., YETI Holdings and Life Time go up and down completely randomly.
Pair Corralation between YETI Holdings and Life Time
Given the investment horizon of 90 days YETI Holdings is expected to under-perform the Life Time. In addition to that, YETI Holdings is 1.15 times more volatile than Life Time Group. It trades about -0.01 of its total potential returns per unit of risk. Life Time Group is currently generating about 0.14 per unit of volatility. If you would invest 1,367 in Life Time Group on November 4, 2024 and sell it today you would earn a total of 1,532 from holding Life Time Group or generate 112.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YETI Holdings vs. Life Time Group
Performance |
| Timeline |
| YETI Holdings |
| Life Time Group |
YETI Holdings and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YETI Holdings and Life Time
The main advantage of trading using opposite YETI Holdings and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YETI Holdings 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.| YETI Holdings vs. Acushnet Holdings Corp | YETI Holdings vs. Madison Square Garden | YETI Holdings vs. Callaway Golf | YETI Holdings vs. Johnson Outdoors |
| Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness | Life Time vs. Mattel Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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