Correlation Between Plby and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Plby 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 Plby and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plby Group and Planet Fitness, you can compare the effects of market volatilities on Plby 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 Plby with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plby and Planet Fitness.
Diversification Opportunities for Plby and Planet Fitness
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Plby and Planet is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Plby Group and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Plby 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 Plby Group 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 Plby i.e., Plby and Planet Fitness go up and down completely randomly.
Pair Corralation between Plby and Planet Fitness
Given the investment horizon of 90 days Plby Group is expected to generate 4.52 times more return on investment than Planet Fitness. However, Plby is 4.52 times more volatile than Planet Fitness. It trades about 0.22 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.44 per unit of risk. If you would invest 83.00 in Plby Group on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Plby Group or generate 55.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plby Group vs. Planet Fitness
Performance |
| Timeline |
| Plby Group |
| Planet Fitness |
Plby and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plby and Planet Fitness
The main advantage of trading using opposite Plby and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plby 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.| Plby vs. Purecycle Technologies Holdings | Plby vs. Dolphin Entertainment | Plby vs. Hall of Fame | Plby vs. Funko Inc |
| Planet Fitness vs. Life Time Group | Planet Fitness vs. Bowlero Corp | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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