Correlation Between CVR Energy and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both CVR Energy and Planet Fitness 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 CVR Energy and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Energy and Planet Fitness Cl, you can compare the effects of market volatilities on CVR Energy and Planet Fitness 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 CVR Energy with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Energy and Planet Fitness.
Diversification Opportunities for CVR Energy and Planet Fitness
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVR and Planet is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CVR Energy and Planet Fitness Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness Cl and CVR Energy 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 CVR Energy are associated (or correlated) with Planet Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Fitness Cl has no effect on the direction of CVR Energy i.e., CVR Energy and Planet Fitness go up and down completely randomly.
Pair Corralation between CVR Energy and Planet Fitness
Assuming the 90 days trading horizon CVR Energy is expected to under-perform the Planet Fitness. In addition to that, CVR Energy is 2.07 times more volatile than Planet Fitness Cl. It trades about -0.13 of its total potential returns per unit of risk. Planet Fitness Cl is currently generating about 0.32 per unit of volatility. If you would invest 8,127 in Planet Fitness Cl on August 27, 2024 and sell it today you would earn a total of 1,947 from holding Planet Fitness Cl or generate 23.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Energy vs. Planet Fitness Cl
Performance |
| Timeline |
| CVR Energy |
| Planet Fitness Cl |
CVR Energy and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Energy and Planet Fitness
The main advantage of trading using opposite CVR Energy and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Energy position performs unexpectedly, Planet Fitness 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 Planet Fitness will offset losses from the drop in Planet Fitness' long position.| CVR Energy vs. Arrow Electronics | CVR Energy vs. Public Storage | CVR Energy vs. Direct Line Insurance | CVR Energy vs. Scandinavian Tobacco Group |
| Planet Fitness vs. Samsung Electronics Co | Planet Fitness vs. Samsung Electronics Co | Planet Fitness vs. Hyundai Motor | Planet Fitness vs. Toyota Motor Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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