Correlation Between Planet Fitness and Golden Heaven
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Golden Heaven 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 Golden Heaven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Golden Heaven Group, you can compare the effects of market volatilities on Planet Fitness and Golden Heaven 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 Golden Heaven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Golden Heaven.
Diversification Opportunities for Planet Fitness and Golden Heaven
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Planet and Golden is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Golden Heaven Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Heaven Group 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 Golden Heaven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Heaven Group has no effect on the direction of Planet Fitness i.e., Planet Fitness and Golden Heaven go up and down completely randomly.
Pair Corralation between Planet Fitness and Golden Heaven
Given the investment horizon of 90 days Planet Fitness is expected to generate 0.25 times more return on investment than Golden Heaven. However, Planet Fitness is 3.95 times less risky than Golden Heaven. It trades about -0.25 of its potential returns per unit of risk. Golden Heaven Group is currently generating about -0.32 per unit of risk. If you would invest 10,767 in Planet Fitness on December 4, 2024 and sell it today you would lose (1,375) from holding Planet Fitness or give up 12.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Planet Fitness vs. Golden Heaven Group
Performance |
Timeline |
Planet Fitness |
Golden Heaven Group |
Planet Fitness and Golden Heaven Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Planet Fitness and Golden Heaven
The main advantage of trading using opposite Planet Fitness and Golden Heaven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Golden Heaven 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 Golden Heaven will offset losses from the drop in Golden Heaven's long position.Planet Fitness vs. Life Time Group | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment | Planet Fitness vs. Johnson Outdoors |
Golden Heaven vs. Ameriprise Financial | Golden Heaven vs. Eddy Smart Home | Golden Heaven vs. City Office REIT | Golden Heaven vs. Autohome |
Check out your portfolio center.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Stocks Directory Find actively traded stocks across global markets |