Correlation Between Harvard Apparatus and Planet Fitness

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

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

Diversification Opportunities for Harvard Apparatus and Planet Fitness

-0.78

Correlation Coefficient

Harvard Apparatus  Planet Fitness

Pay attention - limited upside

The 3 months correlation between Harvard and Planet is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Harvard Apparatus Regenerative and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Harvard Apparatus 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 Harvard Apparatus Regenerative 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 Harvard Apparatus i.e., Harvard Apparatus and Planet Fitness go up and down completely randomly.

Pair Corralation between Harvard Apparatus and Planet Fitness

If you would invest  8,006  in Planet Fitness on October 22, 2024 and sell it today you would earn a total of  2,440  from holding Planet Fitness or generate 30.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.64%
Values	Daily Returns

Harvard Apparatus Regenerative  vs.  Planet Fitness

Harvard Apparatus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harvard Apparatus Regenerative has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Harvard Apparatus is not utilizing all of its potentials. The new stock price disarray, may contribute to short-term losses for the investors.

Planet Fitness

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness are ranked lower than 17 (%) 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 Harvard Apparatus and Planet Fitness

The main advantage of trading using opposite Harvard Apparatus and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvard Apparatus 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 Harvard Apparatus Regenerative 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.