Correlation Between Planet Fitness and Coeur Mining
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Coeur Mining 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 Coeur Mining 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 Coeur Mining, you can compare the effects of market volatilities on Planet Fitness and Coeur Mining 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 Coeur Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Coeur Mining.
Diversification Opportunities for Planet Fitness and Coeur Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Planet and Coeur is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness Cl and Coeur Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur Mining 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 Coeur Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur Mining has no effect on the direction of Planet Fitness i.e., Planet Fitness and Coeur Mining go up and down completely randomly.
Pair Corralation between Planet Fitness and Coeur Mining
Assuming the 90 days trading horizon Planet Fitness Cl is expected to generate 0.87 times more return on investment than Coeur Mining. However, Planet Fitness Cl is 1.15 times less risky than Coeur Mining. It trades about 0.33 of its potential returns per unit of risk. Coeur Mining is currently generating about 0.13 per unit of risk. If you would invest 7,956 in Planet Fitness Cl on September 5, 2024 and sell it today you would earn a total of 1,951 from holding Planet Fitness Cl or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Planet Fitness Cl vs. Coeur Mining
Performance |
| Timeline |
| Planet Fitness Cl |
| Coeur Mining |
Planet Fitness and Coeur Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Coeur Mining
The main advantage of trading using opposite Planet Fitness and Coeur Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Coeur Mining 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 Coeur Mining will offset losses from the drop in Coeur Mining's long position.| Planet Fitness vs. Samsung Electronics Co | Planet Fitness vs. Samsung Electronics Co | Planet Fitness vs. Hyundai Motor | Planet Fitness vs. Toyota Motor Corp |
| Coeur Mining vs. Planet Fitness Cl | Coeur Mining vs. HCA Healthcare | Coeur Mining vs. Impax Environmental Markets | Coeur Mining vs. Spire Healthcare Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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