Correlation Between Lifevantage and Hawkins
Can any of the company-specific risk be diversified away by investing in both Lifevantage and Hawkins 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 Hawkins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifevantage and Hawkins, you can compare the effects of market volatilities on Lifevantage and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifevantage and Hawkins.
Diversification Opportunities for Lifevantage and Hawkins
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lifevantage and Hawkins is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lifevantage and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Lifevantage i.e., Lifevantage and Hawkins go up and down completely randomly.
Pair Corralation between Lifevantage and Hawkins
Given the investment horizon of 90 days Lifevantage is expected to generate 2.4 times more return on investment than Hawkins. However, Lifevantage is 2.4 times more volatile than Hawkins. It trades about 0.02 of its potential returns per unit of risk. Hawkins is currently generating about -0.11 per unit of risk. If you would invest 1,766 in Lifevantage on December 2, 2024 and sell it today you would lose (49.00) from holding Lifevantage or give up 2.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lifevantage vs. Hawkins
Performance |
Timeline |
Lifevantage |
Hawkins |
Lifevantage and Hawkins Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lifevantage and Hawkins
The main advantage of trading using opposite Lifevantage and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifevantage position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.Lifevantage vs. Central Garden Pet | Lifevantage vs. Central Garden Pet | Lifevantage vs. Lifeway Foods | Lifevantage vs. Seneca Foods Corp |
Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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