Correlation Between Contagious Gaming and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Contagious Gaming 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 Contagious Gaming and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Contagious Gaming and Planet Fitness, you can compare the effects of market volatilities on Contagious Gaming 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 Contagious Gaming with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Contagious Gaming and Planet Fitness.
Diversification Opportunities for Contagious Gaming and Planet Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Contagious and Planet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Contagious Gaming and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Contagious Gaming 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 Contagious Gaming 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 Contagious Gaming i.e., Contagious Gaming and Planet Fitness go up and down completely randomly.
Pair Corralation between Contagious Gaming and Planet Fitness
Assuming the 90 days horizon Contagious Gaming is expected to generate 2.84 times less return on investment than Planet Fitness. In addition to that, Contagious Gaming is 3.27 times more volatile than Planet Fitness. It trades about 0.0 of its total potential returns per unit of risk. Planet Fitness is currently generating about 0.03 per unit of volatility. 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 | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Contagious Gaming vs. Planet Fitness
Performance |
| Timeline |
| Contagious Gaming |
| Planet Fitness |
Contagious Gaming and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Contagious Gaming and Planet Fitness
The main advantage of trading using opposite Contagious Gaming and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Contagious Gaming 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.| Contagious Gaming vs. US Global Investors | Contagious Gaming vs. Waste Management | Contagious Gaming vs. Viemed Healthcare | Contagious Gaming vs. Omni Health |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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