Correlation Between B2digital and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both B2digital 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 B2digital and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between B2digital and Planet Fitness, you can compare the effects of market volatilities on B2digital 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 B2digital with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of B2digital and Planet Fitness.
Diversification Opportunities for B2digital and Planet Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between B2digital and Planet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding B2digital and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and B2digital 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 B2digital 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 B2digital i.e., B2digital and Planet Fitness go up and down completely randomly.
Pair Corralation between B2digital and Planet Fitness
If you would invest 7,850 in Planet Fitness on August 31, 2024 and sell it today you would earn a total of 2,252 from holding Planet Fitness or generate 28.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
B2digital vs. Planet Fitness
Performance |
| Timeline |
| B2digital |
| Planet Fitness |
B2digital and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with B2digital and Planet Fitness
The main advantage of trading using opposite B2digital and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if B2digital 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.| B2digital vs. Yamaha Corp DRC | B2digital vs. Planet Fitness | B2digital vs. Plby Group | B2digital vs. Shimano Inc ADR |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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