Correlation Between Six Flags and F45 Training
Can any of the company-specific risk be diversified away by investing in both Six Flags and F45 Training 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 Six Flags and F45 Training into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and F45 Training Holdings, you can compare the effects of market volatilities on Six Flags and F45 Training 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 Six Flags with a short position of F45 Training. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and F45 Training.
Diversification Opportunities for Six Flags and F45 Training
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Six and F45 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and F45 Training Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F45 Training Holdings and Six Flags 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 Six Flags Entertainment are associated (or correlated) with F45 Training. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F45 Training Holdings has no effect on the direction of Six Flags i.e., Six Flags and F45 Training go up and down completely randomly.
Pair Corralation between Six Flags and F45 Training
Considering the 90-day investment horizon Six Flags Entertainment is expected to generate 0.35 times more return on investment than F45 Training. However, Six Flags Entertainment is 2.86 times less risky than F45 Training. It trades about 0.03 of its potential returns per unit of risk. F45 Training Holdings is currently generating about -0.17 per unit of risk. If you would invest 3,742 in Six Flags Entertainment on August 30, 2024 and sell it today you would earn a total of 897.00 from holding Six Flags Entertainment or generate 23.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.25% |
| Values | Daily Returns |
Six Flags Entertainment vs. F45 Training Holdings
Performance |
| Timeline |
| Six Flags Entertainment |
| F45 Training Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Six Flags and F45 Training Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and F45 Training
The main advantage of trading using opposite Six Flags and F45 Training positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, F45 Training 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 F45 Training will offset losses from the drop in F45 Training's long position.| Six Flags vs. Planet Fitness | Six Flags vs. Madison Square Garden | Six Flags vs. Mattel Inc | Six Flags vs. Johnson Outdoors |
| F45 Training vs. Life Time Group | F45 Training vs. Bowlero Corp | F45 Training vs. Planet Fitness | F45 Training vs. JAKKS Pacific |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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