Correlation Between Peloton Interactive and Nautilus
Can any of the company-specific risk be diversified away by investing in both Peloton Interactive and Nautilus 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 Peloton Interactive and Nautilus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Interactive and Nautilus Group, you can compare the effects of market volatilities on Peloton Interactive and Nautilus 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 Peloton Interactive with a short position of Nautilus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Interactive and Nautilus.
Diversification Opportunities for Peloton Interactive and Nautilus
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peloton and Nautilus is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Interactive and Nautilus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nautilus Group and Peloton Interactive 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 Peloton Interactive are associated (or correlated) with Nautilus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nautilus Group has no effect on the direction of Peloton Interactive i.e., Peloton Interactive and Nautilus go up and down completely randomly.
Pair Corralation between Peloton Interactive and Nautilus
Given the investment horizon of 90 days Peloton Interactive is expected to generate 1.61 times more return on investment than Nautilus. However, Peloton Interactive is 1.61 times more volatile than Nautilus Group. It trades about 0.03 of its potential returns per unit of risk. Nautilus Group is currently generating about -0.08 per unit of risk. If you would invest 933.00 in Peloton Interactive on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Peloton Interactive or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 28.24% |
| Values | Daily Returns |
Peloton Interactive vs. Nautilus Group
Performance |
| Timeline |
| Peloton Interactive |
| Nautilus Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Peloton Interactive and Nautilus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Interactive and Nautilus
The main advantage of trading using opposite Peloton Interactive and Nautilus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Interactive position performs unexpectedly, Nautilus 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 Nautilus will offset losses from the drop in Nautilus' long position.| Peloton Interactive vs. Zoom Video Communications | Peloton Interactive vs. DocuSign | Peloton Interactive vs. Pinterest | Peloton Interactive vs. Teladoc |
| Nautilus vs. Xponential Fitness | Nautilus vs. Life Time Group | Nautilus vs. Mattel Inc | Nautilus vs. Bowlero Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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