Correlation Between Acushnet Holdings and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Acushnet Holdings 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 Acushnet Holdings and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acushnet Holdings Corp and Planet Fitness, you can compare the effects of market volatilities on Acushnet Holdings 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 Acushnet Holdings with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acushnet Holdings and Planet Fitness.
Diversification Opportunities for Acushnet Holdings and Planet Fitness
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acushnet and Planet is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Acushnet Holdings Corp and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Acushnet Holdings 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 Acushnet Holdings Corp 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 Acushnet Holdings i.e., Acushnet Holdings and Planet Fitness go up and down completely randomly.
Pair Corralation between Acushnet Holdings and Planet Fitness
Given the investment horizon of 90 days Acushnet Holdings is expected to generate 2.48 times less return on investment than Planet Fitness. But when comparing it to its historical volatility, Acushnet Holdings Corp is 1.01 times less risky than Planet Fitness. It trades about 0.06 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8,191 in Planet Fitness on August 24, 2024 and sell it today you would earn a total of 1,811 from holding Planet Fitness or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acushnet Holdings Corp vs. Planet Fitness
Performance |
| Timeline |
| Acushnet Holdings Corp |
| Planet Fitness |
Acushnet Holdings and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acushnet Holdings and Planet Fitness
The main advantage of trading using opposite Acushnet Holdings and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acushnet Holdings 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.| Acushnet Holdings vs. Bowlero Corp | Acushnet Holdings vs. YETI Holdings | Acushnet Holdings vs. Madison Square Garden | Acushnet Holdings vs. Six Flags Entertainment |
| Planet Fitness vs. Life Time Group | Planet Fitness vs. Bowlero Corp | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |