Correlation Between CapitaLand Investment and FitLife Brands,

Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and FitLife Brands, 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 CapitaLand Investment and FitLife Brands, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CapitaLand Investment Limited and FitLife Brands, Common, you can compare the effects of market volatilities on CapitaLand Investment and FitLife Brands, 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 CapitaLand Investment with a short position of FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and FitLife Brands,.

Diversification Opportunities for CapitaLand Investment and FitLife Brands,

-0.27

Correlation Coefficient

CapitaLand Investment  FitLife Brands,

Very good diversification

The 3 months correlation between CapitaLand and FitLife is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common and CapitaLand Investment 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 CapitaLand Investment Limited are associated (or correlated) with FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and FitLife Brands, go up and down completely randomly.

Pair Corralation between CapitaLand Investment and FitLife Brands,

Assuming the 90 days horizon CapitaLand Investment is expected to generate 4.71 times less return on investment than FitLife Brands,. In addition to that, CapitaLand Investment is 1.16 times more volatile than FitLife Brands, Common. It trades about 0.01 of its total potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.07 per unit of volatility. If you would invest  2,233  in FitLife Brands, Common on October 22, 2024 and sell it today you would earn a total of  1,014  from holding FitLife Brands, Common or generate 45.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.56%
Values	Daily Returns

CapitaLand Investment Limited  vs.  FitLife Brands, Common

CapitaLand Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CapitaLand Investment Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's essential indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

FitLife Brands, Common

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FitLife Brands, Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, FitLife Brands, is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CapitaLand Investment and FitLife Brands,

The main advantage of trading using opposite CapitaLand Investment and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, FitLife Brands, 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 FitLife Brands, will offset losses from the drop in FitLife Brands,'s long position.

The idea behind CapitaLand Investment Limited and FitLife Brands, Common 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.