Correlation Between Bowlero Corp and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Bowlero Corp 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 Bowlero Corp and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bowlero Corp and Planet Fitness, you can compare the effects of market volatilities on Bowlero Corp 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 Bowlero Corp with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowlero Corp and Planet Fitness.
Diversification Opportunities for Bowlero Corp and Planet Fitness
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bowlero and Planet is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bowlero Corp and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Bowlero Corp 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 Bowlero 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 Bowlero Corp i.e., Bowlero Corp and Planet Fitness go up and down completely randomly.
Pair Corralation between Bowlero Corp and Planet Fitness
Given the investment horizon of 90 days Bowlero Corp is expected to generate 21.86 times less return on investment than Planet Fitness. In addition to that, Bowlero Corp is 1.54 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 0.17 per unit of volatility. If you would invest 8,107 in Planet Fitness on August 23, 2024 and sell it today you would earn a total of 1,895 from holding Planet Fitness or generate 23.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bowlero Corp vs. Planet Fitness
Performance |
| Timeline |
| Bowlero Corp |
| Planet Fitness |
Bowlero Corp and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowlero Corp and Planet Fitness
The main advantage of trading using opposite Bowlero Corp and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowlero Corp 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.| Bowlero Corp vs. Acushnet Holdings Corp | Bowlero Corp vs. YETI Holdings | Bowlero Corp vs. Madison Square Garden | Bowlero Corp vs. Life Time Group |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |