Correlation Between Planet Fitness and Silver Bullet

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

By analyzing existing cross correlation between Planet Fitness Cl and Silver Bullet Data, you can compare the effects of market volatilities on Planet Fitness and Silver Bullet 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 Planet Fitness with a short position of Silver Bullet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Silver Bullet.

Diversification Opportunities for Planet Fitness and Silver Bullet

0.52

Correlation Coefficient

Planet Fitness  Silver Bullet

Very weak diversification

The 3 months correlation between Planet and Silver is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness Cl and Silver Bullet Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Bullet Data and Planet Fitness 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 Planet Fitness Cl are associated (or correlated) with Silver Bullet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Bullet Data has no effect on the direction of Planet Fitness i.e., Planet Fitness and Silver Bullet go up and down completely randomly.

Pair Corralation between Planet Fitness and Silver Bullet

Assuming the 90 days trading horizon Planet Fitness Cl is expected to generate 0.99 times more return on investment than Silver Bullet. However, Planet Fitness Cl is 1.01 times less risky than Silver Bullet. It trades about 0.01 of its potential returns per unit of risk. Silver Bullet Data is currently generating about -0.38 per unit of risk. If you would invest  10,087  in Planet Fitness Cl on December 24, 2024 and sell it today you would earn a total of  13.00  from holding Planet Fitness Cl or generate 0.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	91.94%
Values	Daily Returns

Planet Fitness Cl  vs.  Silver Bullet Data

Planet Fitness Cl

Risk-Adjusted Performance

Very Weak

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

Silver Bullet Data

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silver Bullet Data has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Planet Fitness and Silver Bullet

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

The idea behind Planet Fitness Cl and Silver Bullet Data 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.