Correlation Between Planet Fitness and Plby
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Plby 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 Plby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Plby Group, you can compare the effects of market volatilities on Planet Fitness and Plby 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 Plby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Plby.
Diversification Opportunities for Planet Fitness and Plby
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Planet and Plby is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Plby Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plby 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 Plby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plby Group has no effect on the direction of Planet Fitness i.e., Planet Fitness and Plby go up and down completely randomly.
Pair Corralation between Planet Fitness and Plby
Given the investment horizon of 90 days Planet Fitness is expected to generate 2.25 times less return on investment than Plby. But when comparing it to its historical volatility, Planet Fitness is 4.52 times less risky than Plby. It trades about 0.44 of its potential returns per unit of risk. Plby Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Plby Group on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Plby Group or generate 55.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Plby Group
Performance |
| Timeline |
| Planet Fitness |
| Plby Group |
Planet Fitness and Plby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Plby
The main advantage of trading using opposite Planet Fitness and Plby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Plby 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 Plby will offset losses from the drop in Plby'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 |
| Plby vs. Purecycle Technologies Holdings | Plby vs. Dolphin Entertainment | Plby vs. Hall of Fame | Plby vs. Funko Inc |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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