Correlation Between Lifevantage and Abacus Life,

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

By analyzing existing cross correlation between Lifevantage and Abacus Life, 9875, you can compare the effects of market volatilities on Lifevantage and Abacus Life, 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 Lifevantage with a short position of Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Abacus Life,.

Diversification Opportunities for Lifevantage and Abacus Life,

0.75

Correlation Coefficient

Lifevantage  Abacus Life,

Poor diversification

The 3 months correlation between Lifevantage and Abacus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 and Lifevantage 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 Lifevantage are associated (or correlated) with Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Lifevantage i.e., Lifevantage and Abacus Life, go up and down completely randomly.

Pair Corralation between Lifevantage and Abacus Life,

Given the investment horizon of 90 days Lifevantage is expected to generate 2.84 times more return on investment than Abacus Life,. However, Lifevantage is 2.84 times more volatile than Abacus Life, 9875. It trades about 0.16 of its potential returns per unit of risk. Abacus Life, 9875 is currently generating about 0.14 per unit of risk. If you would invest  1,230  in Lifevantage on October 1, 2024 and sell it today you would earn a total of  555.00  from holding Lifevantage or generate 45.12% return on investment over 90 days.

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

Lifevantage  vs.  Abacus Life, 9875

Lifevantage

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lifevantage are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Lifevantage displayed solid returns over the last few months and may actually be approaching a breakup point.

Abacus Life, 9875

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Abacus Life, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lifevantage and Abacus Life,

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

The idea behind Lifevantage and Abacus Life, 9875 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.