Correlation Between Planet Fitness and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and CEWE Stiftung 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 CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and CEWE Stiftung Co, you can compare the effects of market volatilities on Planet Fitness and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and CEWE Stiftung.
Diversification Opportunities for Planet Fitness and CEWE Stiftung
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Planet and CEWE is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of Planet Fitness i.e., Planet Fitness and CEWE Stiftung go up and down completely randomly.
Pair Corralation between Planet Fitness and CEWE Stiftung
Assuming the 90 days horizon Planet Fitness is expected to generate 2.04 times more return on investment than CEWE Stiftung. However, Planet Fitness is 2.04 times more volatile than CEWE Stiftung Co. It trades about 0.27 of its potential returns per unit of risk. CEWE Stiftung Co is currently generating about -0.1 per unit of risk. If you would invest 9,550 in Planet Fitness on October 25, 2024 and sell it today you would earn a total of 750.00 from holding Planet Fitness or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Planet Fitness vs. CEWE Stiftung Co
Performance |
| Timeline |
| Planet Fitness |
| CEWE Stiftung |
Planet Fitness and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and CEWE Stiftung
The main advantage of trading using opposite Planet Fitness and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| Planet Fitness vs. Booking Holdings | Planet Fitness vs. Oriental Land Co | Planet Fitness vs. ANTA Sports Products | Planet Fitness vs. Li Ning Company |
| CEWE Stiftung vs. Corporate Travel Management | CEWE Stiftung vs. Cleanaway Waste Management | CEWE Stiftung vs. GameStop Corp | CEWE Stiftung vs. PLAYMATES TOYS |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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