Correlation Between Planet Fitness and CVS Health
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and CVS Health 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 CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and CVS Health, you can compare the effects of market volatilities on Planet Fitness and CVS Health 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 CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and CVS Health.
Diversification Opportunities for Planet Fitness and CVS Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and CVS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Planet Fitness i.e., Planet Fitness and CVS Health go up and down completely randomly.
Pair Corralation between Planet Fitness and CVS Health
If you would invest 3,267 in CVS Health on August 27, 2024 and sell it today you would earn a total of 27.00 from holding CVS Health or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. CVS Health
Performance |
| Timeline |
| Planet Fitness |
| CVS Health |
Planet Fitness and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and CVS Health
The main advantage of trading using opposite Planet Fitness and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health'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 |
| CVS Health vs. Zoom Video Communications | CVS Health vs. Bread Financial Holdings | CVS Health vs. salesforce inc | CVS Health vs. Cognizant Technology Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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