Correlation Between FitLife Brands, and EnVVeno Medical

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

Diversification Opportunities for FitLife Brands, and EnVVeno Medical

0.25

Correlation Coefficient

FitLife Brands,  EnVVeno Medical

Modest diversification

The 3 months correlation between FitLife and EnVVeno is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and enVVeno Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enVVeno Medical Corp 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 EnVVeno Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enVVeno Medical Corp has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and EnVVeno Medical go up and down completely randomly.

Pair Corralation between FitLife Brands, and EnVVeno Medical

Given the investment horizon of 90 days FitLife Brands, Common is expected to generate 0.47 times more return on investment than EnVVeno Medical. However, FitLife Brands, Common is 2.12 times less risky than EnVVeno Medical. It trades about 0.03 of its potential returns per unit of risk. enVVeno Medical Corp is currently generating about -0.19 per unit of risk. If you would invest  3,262  in FitLife Brands, Common on September 15, 2024 and sell it today you would earn a total of  98.00  from holding FitLife Brands, Common or generate 3.0% return on investment over 90 days.

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

FitLife Brands, Common  vs.  enVVeno Medical Corp

FitLife Brands, Common

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FitLife Brands, Common are ranked lower than 2 (%) 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.

enVVeno Medical Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days enVVeno Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with FitLife Brands, and EnVVeno Medical

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

The idea behind FitLife Brands, Common and enVVeno Medical Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..