Correlation Between Uniper SE and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Planet Fitness 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 Uniper SE and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Planet Fitness Cl, you can compare the effects of market volatilities on Uniper SE and Planet Fitness 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 Uniper SE with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Planet Fitness.
Diversification Opportunities for Uniper SE and Planet Fitness
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Uniper and Planet is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Planet Fitness Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness Cl and Uniper SE 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 Uniper SE are associated (or correlated) with Planet Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Fitness Cl has no effect on the direction of Uniper SE i.e., Uniper SE and Planet Fitness go up and down completely randomly.
Pair Corralation between Uniper SE and Planet Fitness
Assuming the 90 days trading horizon Uniper SE is expected to generate 9.37 times less return on investment than Planet Fitness. In addition to that, Uniper SE is 1.57 times more volatile than Planet Fitness Cl. It trades about 0.0 of its total potential returns per unit of risk. Planet Fitness Cl is currently generating about 0.04 per unit of volatility. If you would invest 8,043 in Planet Fitness Cl on October 14, 2024 and sell it today you would earn a total of 2,125 from holding Planet Fitness Cl or generate 26.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 83.0% |
| Values | Daily Returns |
Uniper SE vs. Planet Fitness Cl
Performance |
| Timeline |
| Uniper SE |
| Planet Fitness Cl |
Uniper SE and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Planet Fitness
The main advantage of trading using opposite Uniper SE and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Planet Fitness 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 Planet Fitness will offset losses from the drop in Planet Fitness' long position.| Uniper SE vs. Celebrus Technologies plc | Uniper SE vs. Fortune Brands Home | Uniper SE vs. Cairn Homes PLC | Uniper SE vs. Sartorius Stedim Biotech |
| Planet Fitness vs. Coeur Mining | Planet Fitness vs. Spirent Communications plc | Planet Fitness vs. Thor Mining PLC | Planet Fitness vs. Batm Advanced Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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