Correlation Between National Beverage and FitLife Brands,

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

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

Diversification Opportunities for National Beverage and FitLife Brands,

0.26

Correlation Coefficient

National Beverage  FitLife Brands,

Modest diversification

The 3 months correlation between National and FitLife is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp 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 National Beverage 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 National Beverage Corp 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 National Beverage i.e., National Beverage and FitLife Brands, go up and down completely randomly.

Pair Corralation between National Beverage and FitLife Brands,

Given the investment horizon of 90 days National Beverage Corp is expected to under-perform the FitLife Brands,. But the stock apears to be less risky and, when comparing its historical volatility, National Beverage Corp is 1.04 times less risky than FitLife Brands,. The stock trades about -0.03 of its potential returns per unit of risk. The FitLife Brands, Common is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,036  in FitLife Brands, Common on September 18, 2024 and sell it today you would earn a total of  314.00  from holding FitLife Brands, Common or generate 10.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

National Beverage Corp  vs.  FitLife Brands, Common

National Beverage Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in National Beverage Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, National Beverage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with National Beverage and FitLife Brands,

The main advantage of trading using opposite National Beverage and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage 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 National Beverage Corp 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.