Correlation Between Planet Fitness and Marfrig Global
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Marfrig Global 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 Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Marfrig Global Foods, you can compare the effects of market volatilities on Planet Fitness and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Marfrig Global.
Diversification Opportunities for Planet Fitness and Marfrig Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Marfrig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Marfrig Global Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfrig Global Foods 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 Marfrig Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfrig Global Foods has no effect on the direction of Planet Fitness i.e., Planet Fitness and Marfrig Global go up and down completely randomly.
Pair Corralation between Planet Fitness and Marfrig Global
If you would invest 1,384 in Marfrig Global Foods on August 28, 2024 and sell it today you would earn a total of 446.00 from holding Marfrig Global Foods or generate 32.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Marfrig Global Foods
Performance |
| Timeline |
| Planet Fitness |
| Marfrig Global Foods |
Planet Fitness and Marfrig Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Marfrig Global
The main advantage of trading using opposite Planet Fitness and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global'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 |
| Marfrig Global vs. Minerva SA | Marfrig Global vs. Companhia Siderrgica Nacional | Marfrig Global vs. Cyrela Brazil Realty |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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