Correlation Between CNVISION MEDIA and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA 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 CNVISION MEDIA and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and Planet Fitness, you can compare the effects of market volatilities on CNVISION MEDIA 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 CNVISION MEDIA with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and Planet Fitness.
Diversification Opportunities for CNVISION MEDIA and Planet Fitness
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CNVISION and Planet is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA i.e., CNVISION MEDIA and Planet Fitness go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and Planet Fitness
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 1.44 times more return on investment than Planet Fitness. However, CNVISION MEDIA is 1.44 times more volatile than Planet Fitness. It trades about 0.17 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.16 per unit of risk. If you would invest 5.50 in CNVISION MEDIA on October 18, 2024 and sell it today you would earn a total of 0.40 from holding CNVISION MEDIA or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. Planet Fitness
Performance |
| Timeline |
| CNVISION MEDIA |
| Planet Fitness |
CNVISION MEDIA and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and Planet Fitness
The main advantage of trading using opposite CNVISION MEDIA and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA 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.| CNVISION MEDIA vs. MAG SILVER | CNVISION MEDIA vs. Motorcar Parts of | CNVISION MEDIA vs. Perseus Mining Limited | CNVISION MEDIA vs. Algonquin Power Utilities |
| Planet Fitness vs. SQUIRREL MEDIA SA | Planet Fitness vs. CDL INVESTMENT | Planet Fitness vs. CNVISION MEDIA | Planet Fitness vs. GigaMedia |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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