Correlation Between FitLife Brands, and SHBASS

Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and SHBASS 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 SHBASS 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 SHBASS 5285215 10 JUN 25, you can compare the effects of market volatilities on FitLife Brands, and SHBASS 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 SHBASS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and SHBASS.

Diversification Opportunities for FitLife Brands, and SHBASS

-0.51

Correlation Coefficient

FitLife Brands,  SHBASS

Excellent diversification

The 3 months correlation between FitLife and SHBASS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and SHBASS 5285215 10 JUN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHBASS 5285215 10 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 SHBASS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHBASS 5285215 10 has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and SHBASS go up and down completely randomly.

Pair Corralation between FitLife Brands, and SHBASS

Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the SHBASS. In addition to that, FitLife Brands, is 111.76 times more volatile than SHBASS 5285215 10 JUN 25. It trades about -0.11 of its total potential returns per unit of risk. SHBASS 5285215 10 JUN 25 is currently generating about -0.6 per unit of volatility. If you would invest  10,028  in SHBASS 5285215 10 JUN 25 on December 24, 2024 and sell it today you would lose (13.00) from holding SHBASS 5285215 10 JUN 25 or give up 0.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	16.67%
Values	Daily Returns

FitLife Brands, Common  vs.  SHBASS 5285215 10 JUN 25

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 unfluctuating 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.

SHBASS 5285215 10

Risk-Adjusted Performance

Very Weak

Over the last 90 days SHBASS 5285215 10 JUN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SHBASS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FitLife Brands, and SHBASS

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

The idea behind FitLife Brands, Common and SHBASS 5285215 10 JUN 25 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.