Correlation Between Planet Fitness and Hasbro
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Hasbro 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 Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Hasbro Inc, you can compare the effects of market volatilities on Planet Fitness and Hasbro 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 Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Hasbro.
Diversification Opportunities for Planet Fitness and Hasbro
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Planet and Hasbro is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc 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 Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Planet Fitness i.e., Planet Fitness and Hasbro go up and down completely randomly.
Pair Corralation between Planet Fitness and Hasbro
Given the investment horizon of 90 days Planet Fitness is expected to generate 14.8 times less return on investment than Hasbro. But when comparing it to its historical volatility, Planet Fitness is 1.06 times less risky than Hasbro. It trades about 0.01 of its potential returns per unit of risk. Hasbro Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,511 in Hasbro Inc on December 28, 2024 and sell it today you would earn a total of 627.00 from holding Hasbro Inc or generate 11.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Planet Fitness vs. Hasbro Inc
Performance |
Timeline |
Planet Fitness |
Hasbro Inc |
Planet Fitness and Hasbro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Planet Fitness and Hasbro
The main advantage of trading using opposite Planet Fitness and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro'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 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |