Correlation Between AMCON Distributing and FitLife Brands,

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

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

Diversification Opportunities for AMCON Distributing and FitLife Brands,

0.0

Correlation Coefficient

AMCON Distributing  FitLife Brands,

Pay attention - limited upside

The 3 months correlation between AMCON and FitLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and FitLife Brands, go up and down completely randomly.

Pair Corralation between AMCON Distributing and FitLife Brands,

Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the FitLife Brands,. In addition to that, AMCON Distributing is 1.61 times more volatile than FitLife Brands, Common. It trades about -0.02 of its total potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.0 per unit of volatility. If you would invest  3,246  in FitLife Brands, Common on September 25, 2024 and sell it today you would lose (39.00) from holding FitLife Brands, Common or give up 1.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

AMCON Distributing  vs.  FitLife Brands, Common

AMCON Distributing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMCON Distributing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, AMCON Distributing is not utilizing all of its potentials. The recent 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 AMCON Distributing and FitLife Brands,

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

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.