Correlation Between FitLife Brands, and Konica Minolta

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

Diversification Opportunities for FitLife Brands, and Konica Minolta

0.14

Correlation Coefficient

FitLife Brands,  Konica Minolta

Average diversification

The 3 months correlation between FitLife and Konica is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Konica Minolta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konica Minolta 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 Konica Minolta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konica Minolta has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Konica Minolta go up and down completely randomly.

Pair Corralation between FitLife Brands, and Konica Minolta

Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the Konica Minolta. But the stock apears to be less risky and, when comparing its historical volatility, FitLife Brands, Common is 1.83 times less risky than Konica Minolta. The stock trades about -0.15 of its potential returns per unit of risk. The Konica Minolta is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  406.00  in Konica Minolta on October 10, 2024 and sell it today you would lose (25.00) from holding Konica Minolta or give up 6.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

FitLife Brands, Common  vs.  Konica Minolta

FitLife Brands, Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FitLife Brands, Common has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Konica Minolta

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Konica Minolta are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Konica Minolta reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FitLife Brands, and Konica Minolta

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

The idea behind FitLife Brands, Common and Konica Minolta 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.