Correlation Between Planet Fitness and Panther Metals
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Panther Metals 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 Panther Metals 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 Panther Metals PLC, you can compare the effects of market volatilities on Planet Fitness and Panther Metals 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 Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Panther Metals.
Diversification Opportunities for Planet Fitness and Panther Metals
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Planet and Panther is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness Cl and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals PLC 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 Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of Planet Fitness i.e., Planet Fitness and Panther Metals go up and down completely randomly.
Pair Corralation between Planet Fitness and Panther Metals
Assuming the 90 days trading horizon Planet Fitness Cl is expected to generate 0.22 times more return on investment than Panther Metals. However, Planet Fitness Cl is 4.49 times less risky than Panther Metals. It trades about 0.27 of its potential returns per unit of risk. Panther Metals PLC is currently generating about 0.01 per unit of risk. If you would invest 9,472 in Planet Fitness Cl on September 12, 2024 and sell it today you would earn a total of 738.00 from holding Planet Fitness Cl or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Planet Fitness Cl vs. Panther Metals PLC
Performance |
| Timeline |
| Planet Fitness Cl |
| Panther Metals PLC |
Planet Fitness and Panther Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Panther Metals
The main advantage of trading using opposite Planet Fitness and Panther Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Panther Metals 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 Panther Metals will offset losses from the drop in Panther Metals' long position.| Planet Fitness vs. Ebro Foods | Planet Fitness vs. Naked Wines plc | Planet Fitness vs. One Media iP | Planet Fitness vs. Zinc Media Group |
| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Ferrexpo PLC | Panther Metals vs. Atalaya 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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