Correlation Between Spire Healthcare and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Spire Healthcare 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 Spire Healthcare and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Healthcare Group and Planet Fitness Cl, you can compare the effects of market volatilities on Spire Healthcare 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 Spire Healthcare with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Healthcare and Planet Fitness.
Diversification Opportunities for Spire Healthcare and Planet Fitness
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Planet is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Spire Healthcare Group and Planet Fitness Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness Cl and Spire Healthcare 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 Spire Healthcare Group 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 Cl has no effect on the direction of Spire Healthcare i.e., Spire Healthcare and Planet Fitness go up and down completely randomly.
Pair Corralation between Spire Healthcare and Planet Fitness
Assuming the 90 days trading horizon Spire Healthcare Group is expected to under-perform the Planet Fitness. But the stock apears to be less risky and, when comparing its historical volatility, Spire Healthcare Group is 2.01 times less risky than Planet Fitness. The stock trades about 0.0 of its potential returns per unit of risk. The Planet Fitness Cl is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,229 in Planet Fitness Cl on September 25, 2024 and sell it today you would earn a total of 1,741 from holding Planet Fitness Cl or generate 21.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.6% |
| Values | Daily Returns |
Spire Healthcare Group vs. Planet Fitness Cl
Performance |
| Timeline |
| Spire Healthcare |
| Planet Fitness Cl |
Spire Healthcare and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Healthcare and Planet Fitness
The main advantage of trading using opposite Spire Healthcare and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Healthcare 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.| Spire Healthcare vs. Tungsten West PLC | Spire Healthcare vs. Argo Group Limited | Spire Healthcare vs. Hardide PLC | Spire Healthcare vs. Gfinity PLC |
| Planet Fitness vs. Uniper SE | Planet Fitness vs. Mulberry Group PLC | Planet Fitness vs. London Security Plc | Planet Fitness vs. Triad Group PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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