Correlation Between Planet Fitness and Cambuci SA

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

By analyzing existing cross correlation between Planet Fitness and Cambuci SA, you can compare the effects of market volatilities on Planet Fitness and Cambuci SA 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 Cambuci SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Cambuci SA.

Diversification Opportunities for Planet Fitness and Cambuci SA

0.0

Correlation Coefficient

Planet Fitness  Cambuci SA

Pay attention - limited upside

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

Pair Corralation between Planet Fitness and Cambuci SA

If you would invest  3,984  in Planet Fitness on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Planet Fitness or generate 0.0% return on investment over 90 days.

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

Planet Fitness  vs.  Cambuci SA

Planet Fitness

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Planet Fitness has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong essential indicators, Planet Fitness is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Cambuci SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cambuci SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Planet Fitness and Cambuci SA

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

The idea behind Planet Fitness and Cambuci SA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.