Correlation Between Univest Pennsylvania and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Univest Pennsylvania 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 Univest Pennsylvania and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univest Pennsylvania and Planet Fitness, you can compare the effects of market volatilities on Univest Pennsylvania 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 Univest Pennsylvania with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univest Pennsylvania and Planet Fitness.
Diversification Opportunities for Univest Pennsylvania and Planet Fitness
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Univest and Planet is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Univest Pennsylvania and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Univest Pennsylvania 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 Univest Pennsylvania 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 Univest Pennsylvania i.e., Univest Pennsylvania and Planet Fitness go up and down completely randomly.
Pair Corralation between Univest Pennsylvania and Planet Fitness
Given the investment horizon of 90 days Univest Pennsylvania is expected to generate 1.02 times less return on investment than Planet Fitness. But when comparing it to its historical volatility, Univest Pennsylvania is 1.02 times less risky than Planet Fitness. It trades about 0.03 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,728 in Planet Fitness on September 3, 2024 and sell it today you would earn a total of 2,227 from holding Planet Fitness or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Univest Pennsylvania vs. Planet Fitness
Performance |
| Timeline |
| Univest Pennsylvania |
| Planet Fitness |
Univest Pennsylvania and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univest Pennsylvania and Planet Fitness
The main advantage of trading using opposite Univest Pennsylvania and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univest Pennsylvania 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.| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic Bancorp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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