Correlation Between FitLife Brands, and Kenvue

Can any of the company-specific risk be diversified away by investing in both FitLife Brands, and Kenvue 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 Kenvue 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 Kenvue Inc, you can compare the effects of market volatilities on FitLife Brands, and Kenvue 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 Kenvue. Check out your portfolio center. Please also check ongoing floating volatility patterns of FitLife Brands, and Kenvue.

Diversification Opportunities for FitLife Brands, and Kenvue

-0.59

Correlation Coefficient

FitLife Brands,  Kenvue

Excellent diversification

The 3 months correlation between FitLife and Kenvue is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding FitLife Brands, Common and Kenvue Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenvue Inc 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 Kenvue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenvue Inc has no effect on the direction of FitLife Brands, i.e., FitLife Brands, and Kenvue go up and down completely randomly.

Pair Corralation between FitLife Brands, and Kenvue

Given the investment horizon of 90 days FitLife Brands, Common is expected to under-perform the Kenvue. In addition to that, FitLife Brands, is 2.67 times more volatile than Kenvue Inc. It trades about -0.16 of its total potential returns per unit of risk. Kenvue Inc is currently generating about -0.15 per unit of volatility. If you would invest  2,307  in Kenvue Inc on January 11, 2025 and sell it today you would lose (129.00) from holding Kenvue Inc or give up 5.59% of portfolio value over 90 days.

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

FitLife Brands, Common  vs.  Kenvue Inc

FitLife Brands, Common

Risk-Adjusted Performance

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 unfluctuating performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Kenvue Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kenvue Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Kenvue is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with FitLife Brands, and Kenvue

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

The idea behind FitLife Brands, Common and Kenvue Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.