Correlation Between GreenX Metals and Planet Fitness

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

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

Diversification Opportunities for GreenX Metals and Planet Fitness

-0.78

Correlation Coefficient

GreenX Metals  Planet Fitness

Pay attention - limited upside

The 3 months correlation between GreenX and Planet is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Planet Fitness Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness Cl and GreenX Metals 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 GreenX Metals 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 Cl has no effect on the direction of GreenX Metals i.e., GreenX Metals and Planet Fitness go up and down completely randomly.

Pair Corralation between GreenX Metals and Planet Fitness

Assuming the 90 days trading horizon GreenX Metals is expected to generate 3.81 times less return on investment than Planet Fitness. In addition to that, GreenX Metals is 2.02 times more volatile than Planet Fitness Cl. It trades about 0.02 of its total potential returns per unit of risk. Planet Fitness Cl is currently generating about 0.14 per unit of volatility. If you would invest  8,331  in Planet Fitness Cl on October 6, 2024 and sell it today you would earn a total of  1,692  from holding Planet Fitness Cl or generate 20.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

GreenX Metals  vs.  Planet Fitness Cl

GreenX Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, GreenX Metals is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Planet Fitness Cl

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness Cl are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Planet Fitness unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GreenX Metals and Planet Fitness

The main advantage of trading using opposite GreenX Metals and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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 GreenX Metals and Planet Fitness Cl 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 Anywhere module to track or share privately all of your investments from the convenience of any device.