Correlation Between Planet Fitness and Dragoneer Growth
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Dragoneer Growth 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 Dragoneer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Dragoneer Growth Opportunities, you can compare the effects of market volatilities on Planet Fitness and Dragoneer Growth 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 Dragoneer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Dragoneer Growth.
Diversification Opportunities for Planet Fitness and Dragoneer Growth
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Planet and Dragoneer is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Dragoneer Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dragoneer Growth Opp 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 Dragoneer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dragoneer Growth Opp has no effect on the direction of Planet Fitness i.e., Planet Fitness and Dragoneer Growth go up and down completely randomly.
Pair Corralation between Planet Fitness and Dragoneer Growth
If you would invest 9,703 in Planet Fitness on September 17, 2024 and sell it today you would earn a total of 199.00 from holding Planet Fitness or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Planet Fitness vs. Dragoneer Growth Opportunities
Performance |
| Timeline |
| Planet Fitness |
| Dragoneer Growth Opp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Planet Fitness and Dragoneer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Dragoneer Growth
The main advantage of trading using opposite Planet Fitness and Dragoneer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Dragoneer Growth 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 Dragoneer Growth will offset losses from the drop in Dragoneer Growth'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 |
| Dragoneer Growth vs. Planet Fitness | Dragoneer Growth vs. JD Sports Fashion | Dragoneer Growth vs. Playa Hotels Resorts | Dragoneer Growth vs. Universal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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