Correlation Between SeaWorld Entertainment and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both SeaWorld Entertainment and Planet Fitness 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 SeaWorld Entertainment and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeaWorld Entertainment and Planet Fitness, you can compare the effects of market volatilities on SeaWorld Entertainment and Planet Fitness 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 SeaWorld Entertainment with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeaWorld Entertainment and Planet Fitness.
Diversification Opportunities for SeaWorld Entertainment and Planet Fitness
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeaWorld and Planet is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SeaWorld Entertainment and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and SeaWorld Entertainment 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 SeaWorld Entertainment are associated (or correlated) with Planet Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Fitness has no effect on the direction of SeaWorld Entertainment i.e., SeaWorld Entertainment and Planet Fitness go up and down completely randomly.
Pair Corralation between SeaWorld Entertainment and Planet Fitness
If you would invest 8,125 in Planet Fitness on August 27, 2024 and sell it today you would earn a total of 2,028 from holding Planet Fitness or generate 24.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SeaWorld Entertainment vs. Planet Fitness
Performance |
| Timeline |
| SeaWorld Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Planet Fitness |
SeaWorld Entertainment and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeaWorld Entertainment and Planet Fitness
The main advantage of trading using opposite SeaWorld Entertainment and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeaWorld Entertainment position performs unexpectedly, Planet Fitness 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 Planet Fitness will offset losses from the drop in Planet Fitness' long position.| SeaWorld Entertainment vs. JAKKS Pacific | SeaWorld Entertainment vs. OneSpaWorld Holdings | SeaWorld Entertainment vs. Clarus Corp | SeaWorld Entertainment vs. Six Flags Entertainment |
| Planet Fitness vs. Life Time Group | Planet Fitness vs. Bowlero Corp | Planet Fitness vs. JAKKS Pacific | Planet Fitness vs. Six Flags Entertainment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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