Correlation Between Planet Fitness and Bicicletas Monark
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Bicicletas Monark 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 Planet Fitness and Bicicletas Monark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Bicicletas Monark SA, you can compare the effects of market volatilities on Planet Fitness and Bicicletas Monark 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 Planet Fitness with a short position of Bicicletas Monark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Bicicletas Monark.
Diversification Opportunities for Planet Fitness and Bicicletas Monark
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Bicicletas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Bicicletas Monark SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bicicletas Monark and Planet Fitness 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 Planet Fitness are associated (or correlated) with Bicicletas Monark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bicicletas Monark has no effect on the direction of Planet Fitness i.e., Planet Fitness and Bicicletas Monark go up and down completely randomly.
Pair Corralation between Planet Fitness and Bicicletas Monark
Assuming the 90 days trading horizon Planet Fitness is expected to under-perform the Bicicletas Monark. But the stock apears to be less risky and, when comparing its historical volatility, Planet Fitness is 4.59 times less risky than Bicicletas Monark. The stock trades about -0.02 of its potential returns per unit of risk. The Bicicletas Monark SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 21,033 in Bicicletas Monark SA on August 24, 2024 and sell it today you would earn a total of 9,867 from holding Bicicletas Monark SA or generate 46.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Planet Fitness vs. Bicicletas Monark SA
Performance |
| Timeline |
| Planet Fitness |
| Bicicletas Monark |
Planet Fitness and Bicicletas Monark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Bicicletas Monark
The main advantage of trading using opposite Planet Fitness and Bicicletas Monark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Bicicletas Monark 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 Bicicletas Monark will offset losses from the drop in Bicicletas Monark's long position.| Planet Fitness vs. Bicicletas Monark SA | Planet Fitness vs. Fras le SA | Planet Fitness vs. Western Digital | Planet Fitness vs. Clave Indices De |
| Bicicletas Monark vs. Bombril SA | Bicicletas Monark vs. Bahema Educao SA | Bicicletas Monark vs. Banestes SA | Bicicletas Monark vs. Banco Alfa de |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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