Correlation Between BANDAI NAMCO and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both BANDAI NAMCO 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 BANDAI NAMCO and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANDAI NAMCO Holdings and Planet Fitness, you can compare the effects of market volatilities on BANDAI NAMCO 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 BANDAI NAMCO with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANDAI NAMCO and Planet Fitness.
Diversification Opportunities for BANDAI NAMCO and Planet Fitness
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANDAI and Planet is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding BANDAI NAMCO Holdings and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and BANDAI NAMCO 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 BANDAI NAMCO Holdings 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 BANDAI NAMCO i.e., BANDAI NAMCO and Planet Fitness go up and down completely randomly.
Pair Corralation between BANDAI NAMCO and Planet Fitness
Assuming the 90 days horizon BANDAI NAMCO Holdings is expected to under-perform the Planet Fitness. But the pink sheet apears to be less risky and, when comparing its historical volatility, BANDAI NAMCO Holdings is 1.53 times less risky than Planet Fitness. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Planet Fitness is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 8,125 in Planet Fitness on August 27, 2024 and sell it today you would earn a total of 2,028 from holding Planet Fitness or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANDAI NAMCO Holdings vs. Planet Fitness
Performance |
| Timeline |
| BANDAI NAMCO Holdings |
| Planet Fitness |
BANDAI NAMCO and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANDAI NAMCO and Planet Fitness
The main advantage of trading using opposite BANDAI NAMCO and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANDAI NAMCO 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.| BANDAI NAMCO vs. Shimano Inc ADR | BANDAI NAMCO vs. Hasbro Inc | BANDAI NAMCO vs. YETI Holdings | BANDAI NAMCO vs. Shimano |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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