Correlation Between Planet Fitness and Sharplink Gaming
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Sharplink Gaming 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 Sharplink Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Sharplink Gaming, you can compare the effects of market volatilities on Planet Fitness and Sharplink Gaming 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 Sharplink Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Sharplink Gaming.
Diversification Opportunities for Planet Fitness and Sharplink Gaming
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Planet and Sharplink is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Sharplink Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharplink Gaming 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 Sharplink Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharplink Gaming has no effect on the direction of Planet Fitness i.e., Planet Fitness and Sharplink Gaming go up and down completely randomly.
Pair Corralation between Planet Fitness and Sharplink Gaming
Given the investment horizon of 90 days Planet Fitness is expected to generate 0.33 times more return on investment than Sharplink Gaming. However, Planet Fitness is 3.06 times less risky than Sharplink Gaming. It trades about 0.09 of its potential returns per unit of risk. Sharplink Gaming is currently generating about -0.02 per unit of risk. If you would invest 6,794 in Planet Fitness on August 26, 2024 and sell it today you would earn a total of 3,359 from holding Planet Fitness or generate 49.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Sharplink Gaming
Performance |
| Timeline |
| Planet Fitness |
| Sharplink Gaming |
Planet Fitness and Sharplink Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Sharplink Gaming
The main advantage of trading using opposite Planet Fitness and Sharplink Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Sharplink Gaming 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 Sharplink Gaming will offset losses from the drop in Sharplink Gaming'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 |
| Sharplink Gaming vs. Canterbury Park Holding | Sharplink Gaming vs. Inspired Entertainment | Sharplink Gaming vs. Accel Entertainment | Sharplink Gaming vs. Gambling Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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