Correlation Between Planet Fitness and Aptitude Software
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Aptitude Software 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 Aptitude Software 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 Aptitude Software Group, you can compare the effects of market volatilities on Planet Fitness and Aptitude Software 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 Aptitude Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Aptitude Software.
Diversification Opportunities for Planet Fitness and Aptitude Software
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Planet and Aptitude is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness Cl and Aptitude Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptitude Software 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 Aptitude Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptitude Software has no effect on the direction of Planet Fitness i.e., Planet Fitness and Aptitude Software go up and down completely randomly.
Pair Corralation between Planet Fitness and Aptitude Software
Assuming the 90 days trading horizon Planet Fitness Cl is expected to generate 1.03 times more return on investment than Aptitude Software. However, Planet Fitness is 1.03 times more volatile than Aptitude Software Group. It trades about 0.15 of its potential returns per unit of risk. Aptitude Software Group is currently generating about -0.08 per unit of risk. If you would invest 10,193 in Planet Fitness Cl on November 5, 2024 and sell it today you would earn a total of 626.00 from holding Planet Fitness Cl or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Planet Fitness Cl vs. Aptitude Software Group
Performance |
| Timeline |
| Planet Fitness Cl |
| Aptitude Software |
Planet Fitness and Aptitude Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Aptitude Software
The main advantage of trading using opposite Planet Fitness and Aptitude Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Aptitude Software 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 Aptitude Software will offset losses from the drop in Aptitude Software's long position.| Planet Fitness vs. Europa Metals | Planet Fitness vs. Zegona Communications Plc | Planet Fitness vs. Cellnex Telecom SA | Planet Fitness vs. Cairo Communication SpA |
| Aptitude Software vs. Synthomer plc | Aptitude Software vs. Litigation Capital Management | Aptitude Software vs. Home Depot | Aptitude Software vs. McEwen Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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