Correlation Between Planet Fitness and Chemtrade Logistics
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Chemtrade Logistics 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 Chemtrade Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Chemtrade Logistics Income, you can compare the effects of market volatilities on Planet Fitness and Chemtrade Logistics 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 Chemtrade Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Chemtrade Logistics.
Diversification Opportunities for Planet Fitness and Chemtrade Logistics
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Planet and Chemtrade is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Chemtrade Logistics Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemtrade Logistics 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 Chemtrade Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemtrade Logistics has no effect on the direction of Planet Fitness i.e., Planet Fitness and Chemtrade Logistics go up and down completely randomly.
Pair Corralation between Planet Fitness and Chemtrade Logistics
Given the investment horizon of 90 days Planet Fitness is expected to generate 0.74 times more return on investment than Chemtrade Logistics. However, Planet Fitness is 1.35 times less risky than Chemtrade Logistics. It trades about 0.03 of its potential returns per unit of risk. Chemtrade Logistics Income is currently generating about 0.02 per unit of risk. If you would invest 8,380 in Planet Fitness on October 23, 2024 and sell it today you would earn a total of 2,258 from holding Planet Fitness or generate 26.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Planet Fitness vs. Chemtrade Logistics Income
Performance |
| Timeline |
| Planet Fitness |
| Chemtrade Logistics |
Planet Fitness and Chemtrade Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Chemtrade Logistics
The main advantage of trading using opposite Planet Fitness and Chemtrade Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Chemtrade Logistics 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 Chemtrade Logistics will offset losses from the drop in Chemtrade Logistics' long position.| Planet Fitness vs. Life Time Group | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment | Planet Fitness vs. Johnson Outdoors |
| Chemtrade Logistics vs. Chart Industries | Chemtrade Logistics vs. RBC Bearings Incorporated | Chemtrade Logistics vs. Cimpress NV | Chemtrade Logistics vs. ChampionX |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |