Correlation Between FitLife Brands, and Surge Components

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

Diversification Opportunities for FitLife Brands, and Surge Components

-0.77

Correlation Coefficient

FitLife Brands,  Surge Components

Pay attention - limited upside

The 3 months correlation between FitLife and Surge is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Surge Components in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surge Components 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 Surge Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surge Components has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Surge Components go up and down completely randomly.

Pair Corralation between FitLife Brands, and Surge Components

Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the Surge Components. In addition to that, FitLife Brands, is 1.45 times more volatile than Surge Components. It trades about -0.16 of its total potential returns per unit of risk. Surge Components is currently generating about 0.0 per unit of volatility. If you would invest  230.00  in Surge Components on December 28, 2024 and sell it today you would lose (2.00) from holding Surge Components or give up 0.87% of portfolio value over 90 days.

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

FitLife Brands, Common  vs.  Surge Components

FitLife Brands, Common

Risk-Adjusted Performance

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 unsteady performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Surge Components

Risk-Adjusted Performance

Very Weak

Over the last 90 days Surge Components has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Surge Components is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FitLife Brands, and Surge Components

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

The idea behind FitLife Brands, Common and Surge Components 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.