Correlation Between FitLife Brands, and Entegris

Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Entegris 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 Entegris 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 Entegris, you can compare the effects of market volatilities on FitLife Brands, and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Entegris.

Diversification Opportunities for FitLife Brands, and Entegris

0.43

Correlation Coefficient

FitLife Brands,  Entegris

Very weak diversification

The 3 months correlation between FitLife and Entegris is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Entegris go up and down completely randomly.

Pair Corralation between FitLife Brands, and Entegris

Given the investment horizon of 90 days FitLife Brands, is expected to generate 1.87 times less return on investment than Entegris. In addition to that, FitLife Brands, is 1.07 times more volatile than Entegris. It trades about 0.02 of its total potential returns per unit of risk. Entegris is currently generating about 0.03 per unit of volatility. If you would invest  10,309  in Entegris on October 22, 2024 and sell it today you would earn a total of  329.00  from holding Entegris or generate 3.19% 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.  Entegris

FitLife Brands, Common

Risk-Adjusted Performance

1 of 100

Insignificant

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.

Entegris

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Entegris are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Entegris is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FitLife Brands, and Entegris

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

The idea behind FitLife Brands, Common and Entegris 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.