Correlation Between Peloton Interactive and Plby
Can any of the company-specific risk be diversified away by investing in both Peloton Interactive and Plby 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 Plby into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peloton Interactive and Plby Group, you can compare the effects of market volatilities on Peloton Interactive and Plby 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 Plby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peloton Interactive and Plby.
Diversification Opportunities for Peloton Interactive and Plby
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peloton and Plby is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Peloton Interactive and Plby Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plby 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 Plby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plby Group has no effect on the direction of Peloton Interactive i.e., Peloton Interactive and Plby go up and down completely randomly.
Pair Corralation between Peloton Interactive and Plby
Given the investment horizon of 90 days Peloton Interactive is expected to generate 1.37 times less return on investment than Plby. But when comparing it to its historical volatility, Peloton Interactive is 1.16 times less risky than Plby. It trades about 0.07 of its potential returns per unit of risk. Plby Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Plby Group on September 2, 2024 and sell it today you would earn a total of 74.00 from holding Plby Group or generate 115.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peloton Interactive vs. Plby Group
Performance |
| Timeline |
| Peloton Interactive |
| Plby Group |
Peloton Interactive and Plby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peloton Interactive and Plby
The main advantage of trading using opposite Peloton Interactive and Plby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peloton Interactive position performs unexpectedly, Plby 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 Plby will offset losses from the drop in Plby's long position.| Peloton Interactive vs. Zoom Video Communications | Peloton Interactive vs. DocuSign | Peloton Interactive vs. Pinterest | Peloton Interactive vs. Teladoc |
| Plby vs. Purecycle Technologies Holdings | Plby vs. Dolphin Entertainment | Plby vs. Hall of Fame | Plby vs. Funko Inc |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets |