Correlation Between Planet Fitness and 713448FT0

Can any of the company-specific risk be diversified away by investing in both Planet Fitness and 713448FT0 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 713448FT0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Planet Fitness and PEP 465 15 FEB 53, you can compare the effects of market volatilities on Planet Fitness and 713448FT0 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 713448FT0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and 713448FT0.

Diversification Opportunities for Planet Fitness and 713448FT0

-0.55

Correlation Coefficient

Planet Fitness  713448FT0

Excellent diversification

The 3 months correlation between Planet and 713448FT0 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and PEP 465 15 FEB 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEP 465 15 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 713448FT0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEP 465 15 has no effect on the direction of Planet Fitness i.e., Planet Fitness and 713448FT0 go up and down completely randomly.

Pair Corralation between Planet Fitness and 713448FT0

Given the investment horizon of 90 days Planet Fitness is expected to under-perform the 713448FT0. But the stock apears to be less risky and, when comparing its historical volatility, Planet Fitness is 1.28 times less risky than 713448FT0. The stock trades about -0.03 of its potential returns per unit of risk. The PEP 465 15 FEB 53 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  9,219  in PEP 465 15 FEB 53 on September 27, 2024 and sell it today you would earn a total of  47.00  from holding PEP 465 15 FEB 53 or generate 0.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	68.18%
Values	Daily Returns

Planet Fitness  vs.  PEP 465 15 FEB 53

Planet Fitness

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness are ranked lower than 13 (%) 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.

PEP 465 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PEP 465 15 FEB 53 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for PEP 465 15 FEB 53 investors.

Pair Trading with Planet Fitness and 713448FT0

The main advantage of trading using opposite Planet Fitness and 713448FT0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, 713448FT0 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 713448FT0 will offset losses from the drop in 713448FT0's long position.

The idea behind Planet Fitness and PEP 465 15 FEB 53 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.