Correlation Between Planet Fitness and State Bank
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and State Bank 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 State Bank 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 State Bank of, you can compare the effects of market volatilities on Planet Fitness and State Bank 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and State Bank.
Diversification Opportunities for Planet Fitness and State Bank
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Planet and State is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness Cl and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Planet Fitness i.e., Planet Fitness and State Bank go up and down completely randomly.
Pair Corralation between Planet Fitness and State Bank
Assuming the 90 days trading horizon Planet Fitness Cl is expected to generate 1.51 times more return on investment than State Bank. However, Planet Fitness is 1.51 times more volatile than State Bank of. It trades about 0.14 of its potential returns per unit of risk. State Bank of 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 Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Planet Fitness Cl vs. State Bank of
Performance |
| Timeline |
| Planet Fitness Cl |
| State Bank |
Planet Fitness and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and State Bank
The main advantage of trading using opposite Planet Fitness and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank'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 |
| State Bank vs. Waste Management | State Bank vs. Planet Fitness Cl | State Bank vs. Ross Stores | State Bank vs. CVS Health 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |