Correlation Between Northstar Clean and FitLife Brands,

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

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

Diversification Opportunities for Northstar Clean and FitLife Brands,

0.11

Correlation Coefficient

Northstar Clean  FitLife Brands,

Average diversification

The 3 months correlation between Northstar and FitLife is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Northstar Clean Technologies 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 Northstar Clean 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 Northstar Clean Technologies 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 Northstar Clean i.e., Northstar Clean and FitLife Brands, go up and down completely randomly.

Pair Corralation between Northstar Clean and FitLife Brands,

Assuming the 90 days horizon Northstar Clean Technologies is expected to generate 1.55 times more return on investment than FitLife Brands,. However, Northstar Clean is 1.55 times more volatile than FitLife Brands, Common. It trades about 0.04 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about -0.11 per unit of risk. If you would invest  24.00  in Northstar Clean Technologies on December 22, 2024 and sell it today you would earn a total of  1.00  from holding Northstar Clean Technologies or generate 4.17% return on investment over 90 days.

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

Northstar Clean Technologies  vs.  FitLife Brands, Common

Northstar Clean Tech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Northstar Clean Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Northstar Clean may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

Pair Trading with Northstar Clean and FitLife Brands,

The main advantage of trading using opposite Northstar Clean and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northstar Clean 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 Northstar Clean Technologies 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.