Correlation Between Planet Fitness and BANK CENTRAL
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and BANK CENTRAL 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 BANK CENTRAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and BANK CENTRAL ASIA, you can compare the effects of market volatilities on Planet Fitness and BANK CENTRAL 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 BANK CENTRAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and BANK CENTRAL.
Diversification Opportunities for Planet Fitness and BANK CENTRAL
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Planet and BANK is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and BANK CENTRAL ASIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK CENTRAL ASIA 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 BANK CENTRAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK CENTRAL ASIA has no effect on the direction of Planet Fitness i.e., Planet Fitness and BANK CENTRAL go up and down completely randomly.
Pair Corralation between Planet Fitness and BANK CENTRAL
Assuming the 90 days horizon Planet Fitness is expected to generate 0.94 times more return on investment than BANK CENTRAL. However, Planet Fitness is 1.06 times less risky than BANK CENTRAL. It trades about 0.16 of its potential returns per unit of risk. BANK CENTRAL ASIA is currently generating about -0.05 per unit of risk. If you would invest 9,450 in Planet Fitness on October 16, 2024 and sell it today you would earn a total of 450.00 from holding Planet Fitness or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Planet Fitness vs. BANK CENTRAL ASIA
Performance |
| Timeline |
| Planet Fitness |
| BANK CENTRAL ASIA |
Planet Fitness and BANK CENTRAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and BANK CENTRAL
The main advantage of trading using opposite Planet Fitness and BANK CENTRAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, BANK CENTRAL 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 BANK CENTRAL will offset losses from the drop in BANK CENTRAL'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 |
| BANK CENTRAL vs. Hua Hong Semiconductor | BANK CENTRAL vs. BE Semiconductor Industries | BANK CENTRAL vs. Tower Semiconductor | BANK CENTRAL vs. MPH Health Care |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges |