Correlation Between Goldman Sachs and FitLife Brands,

Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and FitLife Brands, 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 Goldman Sachs and FitLife Brands, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Goldman Sachs Capital and FitLife Brands, Common, you can compare the effects of market volatilities on Goldman Sachs and FitLife Brands, 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 Goldman Sachs with a short position of FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and FitLife Brands,.

Diversification Opportunities for Goldman Sachs and FitLife Brands,

0.07

Correlation Coefficient

Goldman Sachs  FitLife Brands,

Significant diversification

The 3 months correlation between Goldman and FitLife is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Capital and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common and Goldman Sachs 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 Goldman Sachs Capital are associated (or correlated) with FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and FitLife Brands, go up and down completely randomly.

Pair Corralation between Goldman Sachs and FitLife Brands,

Considering the 90-day investment horizon Goldman Sachs is expected to generate 1.48 times less return on investment than FitLife Brands,. But when comparing it to its historical volatility, Goldman Sachs Capital is 1.51 times less risky than FitLife Brands,. It trades about 0.01 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  3,265  in FitLife Brands, Common on October 3, 2024 and sell it today you would lose (5.00) from holding FitLife Brands, Common or give up 0.15% of portfolio value over 90 days.

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

Goldman Sachs Capital  vs.  FitLife Brands, Common

Goldman Sachs Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goldman Sachs Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Goldman Sachs is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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.

Pair Trading with Goldman Sachs and FitLife Brands,

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

The idea behind Goldman Sachs Capital and FitLife Brands, Common 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.