Correlation Between Viking Holdings and FitLife Brands,

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

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

Diversification Opportunities for Viking Holdings and FitLife Brands,

0.32

Correlation Coefficient

Viking Holdings  FitLife Brands,

Weak diversification

The 3 months correlation between Viking and FitLife is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Viking Holdings 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 Viking Holdings 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 Viking Holdings 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 Viking Holdings i.e., Viking Holdings and FitLife Brands, go up and down completely randomly.

Pair Corralation between Viking Holdings and FitLife Brands,

Considering the 90-day investment horizon Viking Holdings is expected to generate 0.86 times more return on investment than FitLife Brands,. However, Viking Holdings is 1.17 times less risky than FitLife Brands,. It trades about 0.14 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.06 per unit of risk. If you would invest  2,610  in Viking Holdings on October 11, 2024 and sell it today you would earn a total of  1,695  from holding Viking Holdings or generate 64.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	35.5%
Values	Daily Returns

Viking Holdings  vs.  FitLife Brands, Common

Viking Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Viking Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile forward indicators, Viking Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

FitLife Brands, Common

Risk-Adjusted Performance

0 of 100

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 nearly stable essential indicators, FitLife Brands, is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Viking Holdings and FitLife Brands,

The main advantage of trading using opposite Viking Holdings and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Holdings 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 Viking Holdings 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.