Correlation Between FitLife Brands, and BKV

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

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

Diversification Opportunities for FitLife Brands, and BKV

0.44

Correlation Coefficient

FitLife Brands,  BKV

Very weak diversification

The 3 months correlation between FitLife and BKV is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and BKV Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKV Corporation and FitLife Brands, 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 FitLife Brands, Common are associated (or correlated) with BKV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKV Corporation has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and BKV go up and down completely randomly.

Pair Corralation between FitLife Brands, and BKV

Given the investment horizon of 90 days FitLife Brands, is expected to generate 23.59 times less return on investment than BKV. In addition to that, FitLife Brands, is 1.18 times more volatile than BKV Corporation. It trades about 0.01 of its total potential returns per unit of risk. BKV Corporation is currently generating about 0.2 per unit of volatility. If you would invest  1,800  in BKV Corporation on September 21, 2024 and sell it today you would earn a total of  413.00  from holding BKV Corporation or generate 22.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	56.07%
Values	Daily Returns

FitLife Brands, Common  vs.  BKV Corp.

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

BKV Corporation

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BKV Corporation are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting forward-looking signals, BKV showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FitLife Brands, and BKV

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

The idea behind FitLife Brands, Common and BKV Corporation 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.