Correlation Between CM Hospitalar and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both CM Hospitalar 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 CM Hospitalar and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CM Hospitalar SA and Planet Fitness, you can compare the effects of market volatilities on CM Hospitalar 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 CM Hospitalar with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM Hospitalar and Planet Fitness.
Diversification Opportunities for CM Hospitalar and Planet Fitness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VVEO3 and Planet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CM Hospitalar SA and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and CM Hospitalar 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 CM Hospitalar SA 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 CM Hospitalar i.e., CM Hospitalar and Planet Fitness go up and down completely randomly.
Pair Corralation between CM Hospitalar and Planet Fitness
If you would invest 197.00 in CM Hospitalar SA on August 30, 2024 and sell it today you would earn a total of 7.00 from holding CM Hospitalar SA or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CM Hospitalar SA vs. Planet Fitness
Performance |
| Timeline |
| CM Hospitalar SA |
| Planet Fitness |
CM Hospitalar and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM Hospitalar and Planet Fitness
The main advantage of trading using opposite CM Hospitalar and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM Hospitalar 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.| CM Hospitalar vs. Unity Software | CM Hospitalar vs. MAHLE Metal Leve | CM Hospitalar vs. Spotify Technology SA | CM Hospitalar vs. Monster Beverage |
| Planet Fitness vs. T4F Entretenimento SA | Planet Fitness vs. Manufatura de Brinquedos | Planet Fitness vs. Manufatura de Brinquedos |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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