Correlation Between JBG SMITH and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both JBG SMITH 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 JBG SMITH and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBG SMITH Properties and Planet Fitness, you can compare the effects of market volatilities on JBG SMITH 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 JBG SMITH with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBG SMITH and Planet Fitness.
Diversification Opportunities for JBG SMITH and Planet Fitness
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JBG and Planet is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding JBG SMITH Properties and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and JBG SMITH 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 JBG SMITH Properties 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 JBG SMITH i.e., JBG SMITH and Planet Fitness go up and down completely randomly.
Pair Corralation between JBG SMITH and Planet Fitness
Given the investment horizon of 90 days JBG SMITH is expected to generate 7.01 times less return on investment than Planet Fitness. But when comparing it to its historical volatility, JBG SMITH Properties is 1.03 times less risky than Planet Fitness. It trades about 0.01 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,728 in Planet Fitness on September 3, 2024 and sell it today you would earn a total of 2,227 from holding Planet Fitness or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JBG SMITH Properties vs. Planet Fitness
Performance |
| Timeline |
| JBG SMITH Properties |
| Planet Fitness |
JBG SMITH and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBG SMITH and Planet Fitness
The main advantage of trading using opposite JBG SMITH and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBG SMITH 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.| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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