Correlation Between Planet Fitness and Bloomin Brands
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Bloomin Brands 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 Bloomin Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Bloomin Brands, you can compare the effects of market volatilities on Planet Fitness and Bloomin Brands 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 Bloomin Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Bloomin Brands.
Diversification Opportunities for Planet Fitness and Bloomin Brands
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Bloomin is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Bloomin Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomin Brands 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 Bloomin Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomin Brands has no effect on the direction of Planet Fitness i.e., Planet Fitness and Bloomin Brands go up and down completely randomly.
Pair Corralation between Planet Fitness and Bloomin Brands
Given the investment horizon of 90 days Planet Fitness is expected to generate 0.66 times more return on investment than Bloomin Brands. However, Planet Fitness is 1.51 times less risky than Bloomin Brands. It trades about 0.39 of its potential returns per unit of risk. Bloomin Brands is currently generating about -0.16 per unit of risk. If you would invest 8,125 in Planet Fitness on August 27, 2024 and sell it today you would earn a total of 2,028 from holding Planet Fitness or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Bloomin Brands
Performance |
| Timeline |
| Planet Fitness |
| Bloomin Brands |
Planet Fitness and Bloomin Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Bloomin Brands
The main advantage of trading using opposite Planet Fitness and Bloomin Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Bloomin Brands 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 Bloomin Brands will offset losses from the drop in Bloomin Brands' long position.| Planet Fitness vs. Life Time Group | Planet Fitness vs. Bowlero Corp | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment |
| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |