Correlation Between Six Flags and Life Time

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Six Flags and Life Time 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 Six Flags and Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and Life Time Group, you can compare the effects of market volatilities on Six Flags and Life Time 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 Six Flags with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Life Time.

Diversification Opportunities for Six Flags and Life Time

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Six Flags and Life Time

If you would invest  1,658  in Life Time Group on December 2, 2024 and sell it today you would earn a total of  1,388  from holding Life Time Group or generate 83.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Six Flags Entertainment  vs.  Life Time Group

 Performance 
       Timeline  
Six Flags Entertainment 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Six Flags Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Six Flags is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Life Time Group 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Life Time Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Life Time demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Six Flags and Life Time Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Six Flags and Life Time

The main advantage of trading using opposite Six Flags and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.
The idea behind Six Flags Entertainment and Life Time Group 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.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
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
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account