Correlation Between Lifeway Foods and Crocs

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

By analyzing existing cross correlation between Lifeway Foods and Crocs Inc, you can compare the effects of market volatilities on Lifeway Foods and Crocs 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 Lifeway Foods with a short position of Crocs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeway Foods and Crocs.

Diversification Opportunities for Lifeway Foods and Crocs

-0.77

Correlation Coefficient

Lifeway Foods  Crocs

Pay attention - limited upside

The 3 months correlation between Lifeway and Crocs is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods and Crocs Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crocs Inc and Lifeway Foods 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 Lifeway Foods are associated (or correlated) with Crocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crocs Inc has no effect on the direction of Lifeway Foods i.e., Lifeway Foods and Crocs go up and down completely randomly.

Pair Corralation between Lifeway Foods and Crocs

Given the investment horizon of 90 days Lifeway Foods is expected to generate 0.48 times more return on investment than Crocs. However, Lifeway Foods is 2.1 times less risky than Crocs. It trades about 0.29 of its potential returns per unit of risk. Crocs Inc is currently generating about -0.06 per unit of risk. If you would invest  2,207  in Lifeway Foods on May 27, 2025 and sell it today you would earn a total of  966.00  from holding Lifeway Foods or generate 43.77% return on investment over 90 days.

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

Lifeway Foods  vs.  Crocs Inc

Lifeway Foods

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lifeway Foods are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Lifeway Foods showed solid returns over the last few months and may actually be approaching a breakup point.

Crocs Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Crocs Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lifeway Foods and Crocs

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

The idea behind Lifeway Foods and Crocs 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.