Correlation Between Planet Fitness and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Compagnie Plastic 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 Compagnie Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Compagnie Plastic Omnium, you can compare the effects of market volatilities on Planet Fitness and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Compagnie Plastic.
Diversification Opportunities for Planet Fitness and Compagnie Plastic
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Planet and Compagnie is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Planet Fitness i.e., Planet Fitness and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Planet Fitness and Compagnie Plastic
Assuming the 90 days horizon Planet Fitness is expected to under-perform the Compagnie Plastic. But the stock apears to be less risky and, when comparing its historical volatility, Planet Fitness is 1.01 times less risky than Compagnie Plastic. The stock trades about -0.06 of its potential returns per unit of risk. The Compagnie Plastic Omnium is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Compagnie Plastic Omnium on October 12, 2024 and sell it today you would earn a total of 82.00 from holding Compagnie Plastic Omnium or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| Planet Fitness |
| Compagnie Plastic Omnium |
Planet Fitness and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Compagnie Plastic
The main advantage of trading using opposite Planet Fitness and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| Planet Fitness vs. Compagnie Plastic Omnium | Planet Fitness vs. SANOK RUBBER ZY | Planet Fitness vs. VULCAN MATERIALS | Planet Fitness vs. Lifeway Foods |
| Compagnie Plastic vs. MeVis Medical Solutions | Compagnie Plastic vs. PDS Biotechnology Corp | Compagnie Plastic vs. IMAGIN MEDICAL INC | Compagnie Plastic vs. AGF Management Limited |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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