Correlation Between Amanasu Techs and Planet Fitness

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

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

Diversification Opportunities for Amanasu Techs and Planet Fitness

0.0

Correlation Coefficient

Amanasu Techs  Planet Fitness

Pay attention - limited upside

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

Pair Corralation between Amanasu Techs and Planet Fitness

If you would invest  8,317  in Planet Fitness on September 18, 2024 and sell it today you would earn a total of  1,585  from holding Planet Fitness or generate 19.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Amanasu Techs Corp  vs.  Planet Fitness

Amanasu Techs Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Planet Fitness

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Planet Fitness unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amanasu Techs and Planet Fitness

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

The idea behind Amanasu Techs Corp and Planet Fitness 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.