Correlation Between Reservoir Media and Lifevantage

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

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

Diversification Opportunities for Reservoir Media and Lifevantage

0.47

Correlation Coefficient

Reservoir Media  Lifevantage

Very weak diversification

The 3 months correlation between Reservoir and Lifevantage is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Reservoir Media and Lifevantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lifevantage and Reservoir Media 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 Reservoir Media are associated (or correlated) with Lifevantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lifevantage has no effect on the direction of Reservoir Media i.e., Reservoir Media and Lifevantage go up and down completely randomly.

Pair Corralation between Reservoir Media and Lifevantage

Given the investment horizon of 90 days Reservoir Media is expected to generate 0.72 times more return on investment than Lifevantage. However, Reservoir Media is 1.4 times less risky than Lifevantage. It trades about 0.06 of its potential returns per unit of risk. Lifevantage is currently generating about 0.04 per unit of risk. If you would invest  716.00  in Reservoir Media on May 6, 2025 and sell it today you would earn a total of  54.00  from holding Reservoir Media or generate 7.54% return on investment over 90 days.

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

Reservoir Media  vs.  Lifevantage

Reservoir Media

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Reservoir Media are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Reservoir Media may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Lifevantage

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lifevantage are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Lifevantage may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Reservoir Media and Lifevantage

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

The idea behind Reservoir Media and Lifevantage 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.