Correlation Between LIFEWAY FOODS and FANDIFI TECHNOLOGY

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

By analyzing existing cross correlation between LIFEWAY FOODS and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on LIFEWAY FOODS and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFEWAY FOODS and FANDIFI TECHNOLOGY.

Diversification Opportunities for LIFEWAY FOODS and FANDIFI TECHNOLOGY

0.0

Correlation Coefficient

LIFEWAY FOODS  FANDIFI TECHNOLOGY

Pay attention - limited upside

The 3 months correlation between LIFEWAY and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LIFEWAY FOODS and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of LIFEWAY FOODS i.e., LIFEWAY FOODS and FANDIFI TECHNOLOGY go up and down completely randomly.

Pair Corralation between LIFEWAY FOODS and FANDIFI TECHNOLOGY

If you would invest  1,150  in LIFEWAY FOODS on March 22, 2025 and sell it today you would earn a total of  910.00  from holding LIFEWAY FOODS or generate 79.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

LIFEWAY FOODS  vs.  FANDIFI TECHNOLOGY P

LIFEWAY FOODS

Risk-Adjusted Performance

Very Weak

Over the last 90 days LIFEWAY FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, LIFEWAY FOODS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

FANDIFI TECHNOLOGY

Risk-Adjusted Performance

Very Weak

Over the last 90 days FANDIFI TECHNOLOGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FANDIFI TECHNOLOGY is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with LIFEWAY FOODS and FANDIFI TECHNOLOGY

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

The idea behind LIFEWAY FOODS and FANDIFI TECHNOLOGY P 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.