Correlation Between Planet Fitness and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and SWISS WATER 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 SWISS WATER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on Planet Fitness and SWISS WATER 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 SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and SWISS WATER.
Diversification Opportunities for Planet Fitness and SWISS WATER
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Planet and SWISS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE 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 are associated (or correlated) with SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of Planet Fitness i.e., Planet Fitness and SWISS WATER go up and down completely randomly.
Pair Corralation between Planet Fitness and SWISS WATER
Assuming the 90 days horizon Planet Fitness is expected to generate 0.47 times more return on investment than SWISS WATER. However, Planet Fitness is 2.14 times less risky than SWISS WATER. It trades about 0.2 of its potential returns per unit of risk. SWISS WATER DECAFFCOFFEE is currently generating about -0.08 per unit of risk. If you would invest 9,050 in Planet Fitness on October 16, 2024 and sell it today you would earn a total of 1,050 from holding Planet Fitness or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Planet Fitness vs. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| Planet Fitness |
| SWISS WATER DECAFFCOFFEE |
Planet Fitness and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and SWISS WATER
The main advantage of trading using opposite Planet Fitness and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| Planet Fitness vs. INVITATION HOMES DL | Planet Fitness vs. Hisense Home Appliances | Planet Fitness vs. THAI BEVERAGE | Planet Fitness vs. Penn National Gaming |
| SWISS WATER vs. Planet Fitness | SWISS WATER vs. PURETECH HEALTH PLC | SWISS WATER vs. Guangdong Investment Limited | SWISS WATER vs. Aluminum of |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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