Correlation Between Planet Fitness and United Airlines
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and United Airlines 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 United Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and United Airlines Holdings, you can compare the effects of market volatilities on Planet Fitness and United Airlines 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 United Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and United Airlines.
Diversification Opportunities for Planet Fitness and United Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and United Airlines Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Airlines Holdings 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 United Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Airlines Holdings has no effect on the direction of Planet Fitness i.e., Planet Fitness and United Airlines go up and down completely randomly.
Pair Corralation between Planet Fitness and United Airlines
If you would invest 23,529 in United Airlines Holdings on September 2, 2024 and sell it today you would earn a total of 5,685 from holding United Airlines Holdings or generate 24.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. United Airlines Holdings
Performance |
| Timeline |
| Planet Fitness |
| United Airlines Holdings |
Planet Fitness and United Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and United Airlines
The main advantage of trading using opposite Planet Fitness and United Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, United Airlines 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 United Airlines will offset losses from the drop in United Airlines' long position.| Planet Fitness vs. Cambuci SA | Planet Fitness vs. Bicicletas Monark SA | Planet Fitness vs. Fras le SA | Planet Fitness vs. Western Digital |
| United Airlines vs. The Bank of | United Airlines vs. Waste Management | United Airlines vs. Charter Communications | United Airlines vs. Ameriprise Financial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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