Correlation Between FitLife Brands, and CSP
Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and CSP 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 FitLife Brands, and CSP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FitLife Brands, Common and CSP Inc, you can compare the effects of market volatilities on FitLife Brands, and CSP 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 FitLife Brands, with a short position of CSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and CSP.
Diversification Opportunities for FitLife Brands, and CSP
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FitLife and CSP is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc and FitLife Brands, 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 FitLife Brands, Common are associated (or correlated) with CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and CSP go up and down completely randomly.
Pair Corralation between FitLife Brands, and CSP
Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.75 times more return on investment than CSP. However, FitLife Brands, Common is 1.33 times less risky than CSP. It trades about 0.07 of its potential returns per unit of risk. CSP Inc is currently generating about -0.07 per unit of risk. If you would invest 1,180 in FitLife Brands, Common on April 16, 2025 and sell it today you would earn a total of 129.00 from holding FitLife Brands, Common or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FitLife Brands, Common vs. CSP Inc
Performance |
| Timeline |
| FitLife Brands, Common |
| CSP Inc |
FitLife Brands, and CSP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FitLife Brands, and CSP
The main advantage of trading using opposite FitLife Brands, and CSP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FitLife Brands, position performs unexpectedly, CSP 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 CSP will offset losses from the drop in CSP's long position.| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
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 CEOs Directory module to screen CEOs from public companies around the world.
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