Correlation Between Planet Fitness and Triller
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Triller 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 Triller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Triller Group, you can compare the effects of market volatilities on Planet Fitness and Triller 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 Triller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Triller.
Diversification Opportunities for Planet Fitness and Triller
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Planet and Triller is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Triller Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triller Group 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 Triller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triller Group has no effect on the direction of Planet Fitness i.e., Planet Fitness and Triller go up and down completely randomly.
Pair Corralation between Planet Fitness and Triller
Given the investment horizon of 90 days Planet Fitness is expected to generate 56.74 times less return on investment than Triller. But when comparing it to its historical volatility, Planet Fitness is 15.7 times less risky than Triller. It trades about 0.03 of its potential returns per unit of risk. Triller Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6.99 in Triller Group on September 13, 2024 and sell it today you would earn a total of 7.95 from holding Triller Group or generate 113.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.98% |
| Values | Daily Returns |
Planet Fitness vs. Triller Group
Performance |
| Timeline |
| Planet Fitness |
| Triller Group |
Planet Fitness and Triller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Triller
The main advantage of trading using opposite Planet Fitness and Triller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Triller 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 Triller will offset losses from the drop in Triller's long position.The idea behind Planet Fitness and Triller Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Triller vs. WPP PLC ADR | Triller vs. Magnite | Triller vs. Valneva SE ADR | Triller vs. SunLink Health Systems |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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