Correlation Between Creo Medical and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Creo Medical 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 Creo Medical and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creo Medical Group and Planet Fitness Cl, you can compare the effects of market volatilities on Creo Medical 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 Creo Medical with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and Planet Fitness.
Diversification Opportunities for Creo Medical and Planet Fitness
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Creo and Planet is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group 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 Creo Medical 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 Creo Medical Group 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 Creo Medical i.e., Creo Medical and Planet Fitness go up and down completely randomly.
Pair Corralation between Creo Medical and Planet Fitness
Assuming the 90 days trading horizon Creo Medical Group is expected to generate 3.02 times more return on investment than Planet Fitness. However, Creo Medical is 3.02 times more volatile than Planet Fitness Cl. It trades about 0.15 of its potential returns per unit of risk. Planet Fitness Cl is currently generating about 0.01 per unit of risk. If you would invest 1,625 in Creo Medical Group on October 13, 2024 and sell it today you would earn a total of 195.00 from holding Creo Medical Group or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Creo Medical Group vs. Planet Fitness Cl
Performance |
| Timeline |
| Creo Medical Group |
| Planet Fitness Cl |
Creo Medical and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and Planet Fitness
The main advantage of trading using opposite Creo Medical and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical 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.| Creo Medical vs. Seche Environnement SA | Creo Medical vs. Europa Metals | Creo Medical vs. Vulcan Materials Co | Creo Medical vs. Applied Materials |
| Planet Fitness vs. Fresenius Medical Care | Planet Fitness vs. Cairo Communication SpA | Planet Fitness vs. Verizon Communications | Planet Fitness vs. Creo Medical Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| 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 | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |