Correlation Between Planet Fitness and B2digital
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and B2digital 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 B2digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and B2digital, you can compare the effects of market volatilities on Planet Fitness and B2digital 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 B2digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and B2digital.
Diversification Opportunities for Planet Fitness and B2digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and B2digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and B2digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B2digital 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 B2digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B2digital has no effect on the direction of Planet Fitness i.e., Planet Fitness and B2digital go up and down completely randomly.
Pair Corralation between Planet Fitness and B2digital
Given the investment horizon of 90 days Planet Fitness is expected to generate 60.81 times less return on investment than B2digital. But when comparing it to its historical volatility, Planet Fitness is 57.07 times less risky than B2digital. It trades about 0.09 of its potential returns per unit of risk. B2digital is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in B2digital on September 2, 2024 and sell it today you would earn a total of 0.00 from holding B2digital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.76% |
| Values | Daily Returns |
Planet Fitness vs. B2digital
Performance |
| Timeline |
| Planet Fitness |
| B2digital |
Planet Fitness and B2digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and B2digital
The main advantage of trading using opposite Planet Fitness and B2digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, B2digital 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 B2digital will offset losses from the drop in B2digital's long position.| Planet Fitness vs. Life Time Group | Planet Fitness vs. Bowlero Corp | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment |
| B2digital vs. Planet Fitness | B2digital vs. Plby Group | B2digital vs. Shimano Inc ADR | B2digital vs. Madison Square Garden |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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