Correlation Between Marine Products and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Marine Products 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 Marine Products and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Products and Planet Fitness, you can compare the effects of market volatilities on Marine Products 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 Marine Products with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Products and Planet Fitness.
Diversification Opportunities for Marine Products and Planet Fitness
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marine and Planet is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Marine Products and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Marine Products 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 Marine Products 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 Marine Products i.e., Marine Products and Planet Fitness go up and down completely randomly.
Pair Corralation between Marine Products and Planet Fitness
Considering the 90-day investment horizon Marine Products is expected to generate 2.64 times less return on investment than Planet Fitness. In addition to that, Marine Products is 1.2 times more volatile than Planet Fitness. It trades about 0.07 of its total potential returns per unit of risk. Planet Fitness is currently generating about 0.23 per unit of volatility. If you would invest 10,024 in Planet Fitness on November 4, 2024 and sell it today you would earn a total of 792.00 from holding Planet Fitness or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Products vs. Planet Fitness
Performance |
| Timeline |
| Marine Products |
| Planet Fitness |
Marine Products and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Products and Planet Fitness
The main advantage of trading using opposite Marine Products and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Products 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.| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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