Correlation Between Planet Fitness and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Vienna Insurance 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 Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness Cl and Vienna Insurance Group, you can compare the effects of market volatilities on Planet Fitness and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Vienna Insurance.
Diversification Opportunities for Planet Fitness and Vienna Insurance
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Planet and Vienna is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness Cl and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Cl are associated (or correlated) with Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Planet Fitness i.e., Planet Fitness and Vienna Insurance go up and down completely randomly.
Pair Corralation between Planet Fitness and Vienna Insurance
Assuming the 90 days trading horizon Planet Fitness Cl is expected to generate 3.6 times more return on investment than Vienna Insurance. However, Planet Fitness is 3.6 times more volatile than Vienna Insurance Group. It trades about 0.14 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.3 per unit of risk. If you would invest 10,087 in Planet Fitness Cl on October 25, 2024 and sell it today you would earn a total of 505.00 from holding Planet Fitness Cl or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.21% |
| Values | Daily Returns |
Planet Fitness Cl vs. Vienna Insurance Group
Performance |
| Timeline |
| Planet Fitness Cl |
| Vienna Insurance |
Planet Fitness and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Vienna Insurance
The main advantage of trading using opposite Planet Fitness and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Planet Fitness vs. Vienna Insurance Group | Planet Fitness vs. Dairy Farm International | Planet Fitness vs. Bell Food Group | Planet Fitness vs. Trainline Plc |
| Vienna Insurance vs. Optima Health plc | Vienna Insurance vs. Polar Capital Technology | Vienna Insurance vs. Inspiration Healthcare Group | Vienna Insurance vs. International Biotechnology Trust |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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