Correlation Between Planet Fitness and Allegheny
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By analyzing existing cross correlation between Planet Fitness and Allegheny Technologies 5875, you can compare the effects of market volatilities on Planet Fitness and Allegheny 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 Allegheny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Allegheny.
Diversification Opportunities for Planet Fitness and Allegheny
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Planet and Allegheny is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Allegheny Technologies 5875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Planet Fitness i.e., Planet Fitness and Allegheny go up and down completely randomly.
Pair Corralation between Planet Fitness and Allegheny
Given the investment horizon of 90 days Planet Fitness is expected to generate 1.34 times more return on investment than Allegheny. However, Planet Fitness is 1.34 times more volatile than Allegheny Technologies 5875. It trades about 0.15 of its potential returns per unit of risk. Allegheny Technologies 5875 is currently generating about -0.2 per unit of risk. If you would invest 9,683 in Planet Fitness on September 14, 2024 and sell it today you would earn a total of 343.00 from holding Planet Fitness or generate 3.54% 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. Allegheny Technologies 5875
Performance |
| Timeline |
| Planet Fitness |
| Allegheny Technologies |
Planet Fitness and Allegheny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Allegheny
The main advantage of trading using opposite Planet Fitness and Allegheny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Allegheny 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 Allegheny will offset losses from the drop in Allegheny's long position.The idea behind Planet Fitness and Allegheny Technologies 5875 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.| Allegheny vs. Visteon Corp | Allegheny vs. Planet Fitness | Allegheny vs. Magna International | Allegheny vs. Brunswick |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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