Correlation Between Planet Fitness and Loud Beverage
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Loud Beverage 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 Loud Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Loud Beverage Group, you can compare the effects of market volatilities on Planet Fitness and Loud Beverage 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 Loud Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Loud Beverage.
Diversification Opportunities for Planet Fitness and Loud Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Loud is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Loud Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loud Beverage 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 Loud Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loud Beverage Group has no effect on the direction of Planet Fitness i.e., Planet Fitness and Loud Beverage go up and down completely randomly.
Pair Corralation between Planet Fitness and Loud Beverage
Given the investment horizon of 90 days Planet Fitness is expected to generate 0.49 times more return on investment than Loud Beverage. However, Planet Fitness is 2.05 times less risky than Loud Beverage. It trades about 0.04 of its potential returns per unit of risk. Loud Beverage Group is currently generating about 0.01 per unit of risk. If you would invest 8,027 in Planet Fitness on November 7, 2024 and sell it today you would earn a total of 2,700 from holding Planet Fitness or generate 33.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Loud Beverage Group
Performance |
| Timeline |
| Planet Fitness |
| Loud Beverage Group |
Planet Fitness and Loud Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Loud Beverage
The main advantage of trading using opposite Planet Fitness and Loud Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Loud Beverage 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 Loud Beverage will offset losses from the drop in Loud Beverage's long position.| Planet Fitness vs. Life Time Group | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment | Planet Fitness vs. Johnson Outdoors |
| Loud Beverage vs. Catalyst Metals Limited | Loud Beverage vs. Ryanair Holdings PLC | Loud Beverage vs. Western Acquisition Ventures | Loud Beverage vs. Electrovaya Common Shares |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |