Correlation Between 694308KG1 and Lifevantage

Can any of the company-specific risk be diversified away by investing in both 694308KG1 and Lifevantage 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 694308KG1 and Lifevantage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 59 15 JUN 32 and Lifevantage, you can compare the effects of market volatilities on 694308KG1 and Lifevantage 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 694308KG1 with a short position of Lifevantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308KG1 and Lifevantage.

Diversification Opportunities for 694308KG1 and Lifevantage

-0.55

Correlation Coefficient

694308KG1  Lifevantage

Excellent diversification

The 3 months correlation between 694308KG1 and Lifevantage is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding PCG 59 15 JUN 32 and Lifevantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifevantage and 694308KG1 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 PCG 59 15 JUN 32 are associated (or correlated) with Lifevantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifevantage has no effect on the direction of 694308KG1 i.e., 694308KG1 and Lifevantage go up and down completely randomly.

Pair Corralation between 694308KG1 and Lifevantage

Assuming the 90 days trading horizon PCG 59 15 JUN 32 is expected to generate 0.11 times more return on investment than Lifevantage. However, PCG 59 15 JUN 32 is 8.94 times less risky than Lifevantage. It trades about -0.09 of its potential returns per unit of risk. Lifevantage is currently generating about -0.04 per unit of risk. If you would invest  10,263  in PCG 59 15 JUN 32 on December 26, 2024 and sell it today you would lose (355.00) from holding PCG 59 15 JUN 32 or give up 3.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PCG 59 15 JUN 32  vs.  Lifevantage

PCG 59 15

Risk-Adjusted Performance

Very Weak

Over the last 90 days PCG 59 15 JUN 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 694308KG1 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Lifevantage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lifevantage has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with 694308KG1 and Lifevantage

The main advantage of trading using opposite 694308KG1 and Lifevantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308KG1 position performs unexpectedly, Lifevantage 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 Lifevantage will offset losses from the drop in Lifevantage's long position.

The idea behind PCG 59 15 JUN 32 and Lifevantage 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..