Correlation Between Manufatura and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Manufatura 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 Manufatura and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manufatura de Brinquedos and Planet Fitness, you can compare the effects of market volatilities on Manufatura 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 Manufatura with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manufatura and Planet Fitness.
Diversification Opportunities for Manufatura and Planet Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manufatura and Planet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manufatura de Brinquedos and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Manufatura 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 Manufatura de Brinquedos 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 Manufatura i.e., Manufatura and Planet Fitness go up and down completely randomly.
Pair Corralation between Manufatura and Planet Fitness
Assuming the 90 days trading horizon Manufatura de Brinquedos is expected to generate 1.63 times more return on investment than Planet Fitness. However, Manufatura is 1.63 times more volatile than Planet Fitness. It trades about 0.04 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.03 per unit of risk. If you would invest 400.00 in Manufatura de Brinquedos on November 19, 2024 and sell it today you would earn a total of 360.00 from holding Manufatura de Brinquedos or generate 90.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manufatura de Brinquedos vs. Planet Fitness
Performance |
| Timeline |
| Manufatura de Brinquedos |
| Planet Fitness |
Manufatura and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manufatura and Planet Fitness
The main advantage of trading using opposite Manufatura and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manufatura 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.| Manufatura vs. Planet Fitness | Manufatura vs. Cambuci SA | Manufatura vs. Bicicletas Monark SA | Manufatura vs. T4F Entretenimento SA |
| Planet Fitness vs. Cambuci SA | Planet Fitness vs. Bicicletas Monark SA | Planet Fitness vs. T4F Entretenimento SA | Planet Fitness vs. Manufatura de Brinquedos |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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