Correlation Between Planet Fitness and Wicket Gaming
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Wicket 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 Wicket 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 Wicket Gaming AB, you can compare the effects of market volatilities on Planet Fitness and Wicket 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 Wicket Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Wicket Gaming.
Diversification Opportunities for Planet Fitness and Wicket Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Wicket is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Wicket Gaming AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wicket Gaming AB 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 Wicket Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wicket Gaming AB has no effect on the direction of Planet Fitness i.e., Planet Fitness and Wicket Gaming go up and down completely randomly.
Pair Corralation between Planet Fitness and Wicket Gaming
Given the investment horizon of 90 days Planet Fitness is expected to generate 0.57 times more return on investment than Wicket Gaming. However, Planet Fitness is 1.76 times less risky than Wicket Gaming. It trades about 0.03 of its potential returns per unit of risk. Wicket Gaming AB is currently generating about -0.05 per unit of risk. If you would invest 7,728 in Planet Fitness on September 3, 2024 and sell it today you would earn a total of 2,227 from holding Planet Fitness or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Planet Fitness vs. Wicket Gaming AB
Performance |
| Timeline |
| Planet Fitness |
| Wicket Gaming AB |
Planet Fitness and Wicket Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Wicket Gaming
The main advantage of trading using opposite Planet Fitness and Wicket Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Wicket 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 Wicket Gaming will offset losses from the drop in Wicket 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 |
| Wicket Gaming vs. NEXON Co | Wicket Gaming vs. Playstudios | Wicket Gaming vs. Doubledown Interactive Co | Wicket Gaming vs. Bragg Gaming 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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