Correlation Between Planet Fitness and SCANDION ONC

Can any of the company-specific risk be diversified away by investing in both Planet Fitness and SCANDION ONC 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 Planet Fitness and SCANDION ONC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Planet Fitness and SCANDION ONC DK 0735, you can compare the effects of market volatilities on Planet Fitness and SCANDION ONC 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 Planet Fitness with a short position of SCANDION ONC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and SCANDION ONC.

Diversification Opportunities for Planet Fitness and SCANDION ONC

0.11

Correlation Coefficient

Planet Fitness  SCANDION ONC

Average diversification

The 3 months correlation between Planet and SCANDION is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and SCANDION ONC DK 0735 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDION ONC DK and Planet Fitness 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 Planet Fitness are associated (or correlated) with SCANDION ONC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDION ONC DK has no effect on the direction of Planet Fitness i.e., Planet Fitness and SCANDION ONC go up and down completely randomly.

Pair Corralation between Planet Fitness and SCANDION ONC

Assuming the 90 days horizon Planet Fitness is expected to generate 0.18 times more return on investment than SCANDION ONC. However, Planet Fitness is 5.67 times less risky than SCANDION ONC. It trades about 0.1 of its potential returns per unit of risk. SCANDION ONC DK 0735 is currently generating about -0.03 per unit of risk. If you would invest  8,400  in Planet Fitness on April 24, 2025 and sell it today you would earn a total of  1,000.00  from holding Planet Fitness or generate 11.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Planet Fitness  vs.  SCANDION ONC DK 0735

Planet Fitness

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Planet Fitness may actually be approaching a critical reversion point that can send shares even higher in August 2025.

SCANDION ONC DK

Risk-Adjusted Performance

Very Weak

Over the last 90 days SCANDION ONC DK 0735 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Planet Fitness and SCANDION ONC

The main advantage of trading using opposite Planet Fitness and SCANDION ONC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, SCANDION ONC 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 SCANDION ONC will offset losses from the drop in SCANDION ONC's long position.

The idea behind Planet Fitness and SCANDION ONC DK 0735 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.