Correlation Between Academy Sports and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Academy Sports 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 Academy Sports and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Academy Sports Outdoors and Planet Fitness, you can compare the effects of market volatilities on Academy Sports 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 Academy Sports with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Academy Sports and Planet Fitness.
Diversification Opportunities for Academy Sports and Planet Fitness
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Academy and Planet is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Academy Sports Outdoors and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Academy Sports 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 Academy Sports Outdoors 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 Academy Sports i.e., Academy Sports and Planet Fitness go up and down completely randomly.
Pair Corralation between Academy Sports and Planet Fitness
Considering the 90-day investment horizon Academy Sports is expected to generate 8.41 times less return on investment than Planet Fitness. In addition to that, Academy Sports is 1.08 times more volatile than Planet Fitness. It trades about 0.0 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 7,728 in Planet Fitness on September 3, 2024 and sell it today you would earn a total of 2,227 from holding Planet Fitness or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Academy Sports Outdoors vs. Planet Fitness
Performance |
| Timeline |
| Academy Sports Outdoors |
| Planet Fitness |
Academy Sports and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Academy Sports and Planet Fitness
The main advantage of trading using opposite Academy Sports and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Academy Sports 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.| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
| Planet Fitness vs. Life Time Group | Planet Fitness vs. Bowlero Corp | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |