Correlation Between LESTE FDO and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both LESTE FDO 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 LESTE FDO and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LESTE FDO INV and Planet Fitness, you can compare the effects of market volatilities on LESTE FDO 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 LESTE FDO with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of LESTE FDO and Planet Fitness.
Diversification Opportunities for LESTE FDO and Planet Fitness
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LESTE and Planet is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding LESTE FDO INV and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and LESTE FDO 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 LESTE FDO INV 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 LESTE FDO i.e., LESTE FDO and Planet Fitness go up and down completely randomly.
Pair Corralation between LESTE FDO and Planet Fitness
Assuming the 90 days trading horizon LESTE FDO INV is expected to under-perform the Planet Fitness. But the fund apears to be less risky and, when comparing its historical volatility, LESTE FDO INV is 3.22 times less risky than Planet Fitness. The fund trades about -0.03 of its potential returns per unit of risk. The Planet Fitness is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,056 in Planet Fitness on September 12, 2024 and sell it today you would earn a total of 3,536 from holding Planet Fitness or generate 87.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
LESTE FDO INV vs. Planet Fitness
Performance |
| Timeline |
| LESTE FDO INV |
| Planet Fitness |
LESTE FDO and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LESTE FDO and Planet Fitness
The main advantage of trading using opposite LESTE FDO and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LESTE FDO 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.| LESTE FDO vs. FDO INV IMOB | LESTE FDO vs. SUPREMO FUNDO DE | LESTE FDO vs. Real Estate Investment | LESTE FDO vs. NAVI CRDITO IMOBILIRIO |
| Planet Fitness vs. Fundo Investimento Imobiliario | Planet Fitness vs. LESTE FDO INV | Planet Fitness vs. Fras le SA | Planet Fitness vs. Western Digital |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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