Correlation Between Cordel Group and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Cordel Group 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 Cordel Group and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cordel Group PLC and Planet Fitness Cl, you can compare the effects of market volatilities on Cordel Group 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 Cordel Group with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cordel Group and Planet Fitness.
Diversification Opportunities for Cordel Group and Planet Fitness
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cordel and Planet is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cordel Group PLC and Planet Fitness Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness Cl and Cordel Group 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 Cordel Group PLC 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 Cl has no effect on the direction of Cordel Group i.e., Cordel Group and Planet Fitness go up and down completely randomly.
Pair Corralation between Cordel Group and Planet Fitness
Assuming the 90 days trading horizon Cordel Group is expected to generate 1.01 times less return on investment than Planet Fitness. In addition to that, Cordel Group is 1.53 times more volatile than Planet Fitness Cl. It trades about 0.12 of its total potential returns per unit of risk. Planet Fitness Cl is currently generating about 0.18 per unit of volatility. If you would invest 6,340 in Planet Fitness Cl on August 30, 2024 and sell it today you would earn a total of 3,733 from holding Planet Fitness Cl or generate 58.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.28% |
| Values | Daily Returns |
Cordel Group PLC vs. Planet Fitness Cl
Performance |
| Timeline |
| Cordel Group PLC |
| Planet Fitness Cl |
Cordel Group and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cordel Group and Planet Fitness
The main advantage of trading using opposite Cordel Group and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cordel Group 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.| Cordel Group vs. Planet Fitness Cl | Cordel Group vs. Inspiration Healthcare Group | Cordel Group vs. Worldwide Healthcare Trust | Cordel Group vs. Omega Healthcare Investors |
| Planet Fitness vs. Tungsten West PLC | Planet Fitness vs. Argo Group Limited | Planet Fitness vs. Hardide PLC | Planet Fitness vs. Versarien PLC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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