Correlation Between Planet Fitness and Sorrento Therapeutics
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Sorrento Therapeutics 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 Sorrento Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Sorrento Therapeutics, you can compare the effects of market volatilities on Planet Fitness and Sorrento Therapeutics 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 Sorrento Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Sorrento Therapeutics.
Diversification Opportunities for Planet Fitness and Sorrento Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Sorrento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Sorrento Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sorrento Therapeutics 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 Sorrento Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sorrento Therapeutics has no effect on the direction of Planet Fitness i.e., Planet Fitness and Sorrento Therapeutics go up and down completely randomly.
Pair Corralation between Planet Fitness and Sorrento Therapeutics
If you would invest 9,469 in Planet Fitness on September 13, 2024 and sell it today you would earn a total of 557.00 from holding Planet Fitness or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Planet Fitness vs. Sorrento Therapeutics
Performance |
| Timeline |
| Planet Fitness |
| Sorrento Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Planet Fitness and Sorrento Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Sorrento Therapeutics
The main advantage of trading using opposite Planet Fitness and Sorrento Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Sorrento Therapeutics 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 Sorrento Therapeutics will offset losses from the drop in Sorrento Therapeutics' long position.The idea behind Planet Fitness and Sorrento Therapeutics 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.| Sorrento Therapeutics vs. Todos Medical | Sorrento Therapeutics vs. Amgen Inc | Sorrento Therapeutics vs. Tower One Wireless | Sorrento Therapeutics vs. Acco Brands |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |