Correlation Between Life Time and SEAS Old
Can any of the company-specific risk be diversified away by investing in both Life Time and SEAS Old 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 Life Time and SEAS Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and SEAS Old, you can compare the effects of market volatilities on Life Time and SEAS Old 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 Life Time with a short position of SEAS Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and SEAS Old.
Diversification Opportunities for Life Time and SEAS Old
Very good diversification
The 3 months correlation between Life and SEAS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and SEAS Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAS Old and Life Time 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 Life Time Group are associated (or correlated) with SEAS Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAS Old has no effect on the direction of Life Time i.e., Life Time and SEAS Old go up and down completely randomly.
Pair Corralation between Life Time and SEAS Old
If you would invest 2,402 in Life Time Group on October 19, 2024 and sell it today you would earn a total of 365.00 from holding Life Time Group or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.44% |
| Values | Daily Returns |
Life Time Group vs. SEAS Old
Performance |
| Timeline |
| Life Time Group |
| SEAS Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Life Time and SEAS Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and SEAS Old
The main advantage of trading using opposite Life Time and SEAS Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, SEAS Old 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 SEAS Old will offset losses from the drop in SEAS Old's long position.| Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness | Life Time vs. Mattel Inc |
| SEAS Old vs. JAKKS Pacific | SEAS Old vs. OneSpaWorld Holdings | SEAS Old vs. Clarus Corp | SEAS Old 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 Correlations module to find global opportunities by holding instruments from different markets.
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