Correlation Between LifeSpeak and Where Food

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

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

Diversification Opportunities for LifeSpeak and Where Food

0.01

Correlation Coefficient

LifeSpeak  Where Food

Significant diversification

The 3 months correlation between LifeSpeak and Where is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding LifeSpeak and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes and LifeSpeak 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 LifeSpeak are associated (or correlated) with Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of LifeSpeak i.e., LifeSpeak and Where Food go up and down completely randomly.

Pair Corralation between LifeSpeak and Where Food

Assuming the 90 days horizon LifeSpeak is expected to under-perform the Where Food. In addition to that, LifeSpeak is 2.68 times more volatile than Where Food Comes. It trades about -0.06 of its total potential returns per unit of risk. Where Food Comes is currently generating about 0.1 per unit of volatility. If you would invest  1,086  in Where Food Comes on August 30, 2024 and sell it today you would earn a total of  113.00  from holding Where Food Comes or generate 10.41% return on investment over 90 days.

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

LifeSpeak  vs.  Where Food Comes

LifeSpeak

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LifeSpeak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Where Food Comes

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Where Food may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with LifeSpeak and Where Food

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

The idea behind LifeSpeak and Where Food Comes 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.