Correlation Between Landcadia Holdings and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Landcadia 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 Landcadia 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 Landcadia Holdings II and Planet Fitness, you can compare the effects of market volatilities on Landcadia 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 Landcadia Holdings with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Landcadia Holdings and Planet Fitness.
Diversification Opportunities for Landcadia Holdings and Planet Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Landcadia and Planet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Landcadia Holdings II and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Landcadia 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 Landcadia Holdings II 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 Landcadia Holdings i.e., Landcadia Holdings and Planet Fitness go up and down completely randomly.
Pair Corralation between Landcadia Holdings and Planet Fitness
If you would invest (100.00) in Landcadia Holdings II on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Landcadia Holdings II or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Landcadia Holdings II vs. Planet Fitness
Performance |
| Timeline |
| Landcadia Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Planet Fitness |
Landcadia Holdings and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Landcadia Holdings and Planet Fitness
The main advantage of trading using opposite Landcadia Holdings and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Landcadia 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.| Landcadia Holdings vs. Alphatec Holdings | Landcadia Holdings vs. Avadel Pharmaceuticals PLC | Landcadia Holdings vs. Amkor Technology | Landcadia Holdings vs. Teleflex Incorporated |
| Planet Fitness vs. Life Time Group | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment | Planet Fitness vs. Johnson Outdoors |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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