Correlation Between Six Flags and Life Time
Can any of the company-specific risk be diversified away by investing in both Six Flags and Life Time 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 Six Flags and Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and Life Time Group, you can compare the effects of market volatilities on Six Flags and Life Time 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 Six Flags with a short position of Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Life Time.
Diversification Opportunities for Six Flags and Life Time
Good diversification
The 3 months correlation between Six and Life is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group and Six Flags 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 Six Flags Entertainment are associated (or correlated) with Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Six Flags i.e., Six Flags and Life Time go up and down completely randomly.
Pair Corralation between Six Flags and Life Time
If you would invest 2,300 in Life Time Group on August 28, 2024 and sell it today you would earn a total of 169.00 from holding Life Time Group or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Six Flags Entertainment vs. Life Time Group
Performance |
| Timeline |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Life Time Group |
Six Flags and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and Life Time
The main advantage of trading using opposite Six Flags and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Six Flags Entertainment |
| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
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.
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