Correlation Between Atmus Filtration and FitLife Brands,

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

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

Diversification Opportunities for Atmus Filtration and FitLife Brands,

0.1

Correlation Coefficient

Atmus Filtration  FitLife Brands,

Average diversification

The 3 months correlation between Atmus and FitLife is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Atmus Filtration 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 Atmus Filtration 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 Atmus Filtration 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 Atmus Filtration i.e., Atmus Filtration and FitLife Brands, go up and down completely randomly.

Pair Corralation between Atmus Filtration and FitLife Brands,

Given the investment horizon of 90 days Atmus Filtration Technologies is expected to generate 0.77 times more return on investment than FitLife Brands,. However, Atmus Filtration Technologies is 1.3 times less risky than FitLife Brands,. It trades about 0.05 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.01 per unit of risk. If you would invest  3,713  in Atmus Filtration Technologies on September 25, 2024 and sell it today you would earn a total of  191.00  from holding Atmus Filtration Technologies or generate 5.14% return on investment over 90 days.

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

Atmus Filtration Technologies  vs.  FitLife Brands, Common

Atmus Filtration Tec

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atmus Filtration Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable primary indicators, Atmus Filtration is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Atmus Filtration and FitLife Brands,

The main advantage of trading using opposite Atmus Filtration and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atmus Filtration 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 Atmus Filtration 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.