Correlation Between Superior Plus and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Planet Fitness, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Planet Fitness.
Diversification Opportunities for Superior Plus and Planet Fitness
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and Planet is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Superior Plus 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 Superior Plus Corp 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 has no effect on the direction of Superior Plus i.e., Superior Plus and Planet Fitness go up and down completely randomly.
Pair Corralation between Superior Plus and Planet Fitness
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Planet Fitness. In addition to that, Superior Plus is 1.25 times more volatile than Planet Fitness. It trades about -0.06 of its total potential returns per unit of risk. Planet Fitness is currently generating about 0.03 per unit of volatility. If you would invest 9,700 in Planet Fitness on October 12, 2024 and sell it today you would earn a total of 50.00 from holding Planet Fitness or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Planet Fitness
Performance |
| Timeline |
| Superior Plus Corp |
| Planet Fitness |
Superior Plus and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Planet Fitness
The main advantage of trading using opposite Superior Plus and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Brockhaus Capital Management | Superior Plus vs. NTT DATA | Superior Plus vs. Data Modul AG | Superior Plus vs. Waste Management |
| Planet Fitness vs. Oriental Land Co | Planet Fitness vs. Superior Plus Corp | Planet Fitness vs. NMI Holdings | Planet Fitness vs. SIVERS SEMICONDUCTORS AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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