Correlation Between Oriental Land and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Oriental Land 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 Oriental Land and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Land Co and Planet Fitness, you can compare the effects of market volatilities on Oriental Land 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 Oriental Land with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Land and Planet Fitness.
Diversification Opportunities for Oriental Land and Planet Fitness
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and Planet is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Land Co and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Oriental Land 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 Oriental Land Co 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 Oriental Land i.e., Oriental Land and Planet Fitness go up and down completely randomly.
Pair Corralation between Oriental Land and Planet Fitness
Assuming the 90 days horizon Oriental Land Co is expected to under-perform the Planet Fitness. But the stock apears to be less risky and, when comparing its historical volatility, Oriental Land Co is 1.21 times less risky than Planet Fitness. The stock trades about -0.11 of its potential returns per unit of risk. The Planet Fitness is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,700 in Planet Fitness on October 12, 2024 and sell it today you would earn a total of 50.00 from holding Planet Fitness or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Oriental Land Co vs. Planet Fitness
Performance |
| Timeline |
| Oriental Land |
| Planet Fitness |
Oriental Land and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Land and Planet Fitness
The main advantage of trading using opposite Oriental Land and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Land 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.| Oriental Land vs. ANTA SPORTS PRODUCT | Oriental Land vs. ATRESMEDIA | Oriental Land vs. REMEDY ENTERTAINMENT OYJ | Oriental Land vs. OFFICE DEPOT |
| Planet Fitness vs. Oriental Land Co | Planet Fitness vs. Superior Plus Corp | Planet Fitness vs. NMI Holdings | Planet Fitness vs. SIVERS SEMICONDUCTORS AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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