Correlation Between Planet Fitness and Caesars Entertainment,

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

By analyzing existing cross correlation between Planet Fitness and Caesars Entertainment,, you can compare the effects of market volatilities on Planet Fitness and Caesars Entertainment, 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 Caesars Entertainment,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Caesars Entertainment,.

Diversification Opportunities for Planet Fitness and Caesars Entertainment,

-0.03

Correlation Coefficient

Planet Fitness  Caesars Entertainment,

Good diversification

The 3 months correlation between Planet and Caesars is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Caesars Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caesars Entertainment, 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 Caesars Entertainment,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caesars Entertainment, has no effect on the direction of Planet Fitness i.e., Planet Fitness and Caesars Entertainment, go up and down completely randomly.

Pair Corralation between Planet Fitness and Caesars Entertainment,

Assuming the 90 days trading horizon Planet Fitness is expected to generate 2.42 times more return on investment than Caesars Entertainment,. However, Planet Fitness is 2.42 times more volatile than Caesars Entertainment,. It trades about 0.04 of its potential returns per unit of risk. Caesars Entertainment, is currently generating about -0.04 per unit of risk. If you would invest  4,056  in Planet Fitness on April 1, 2025 and sell it today you would earn a total of  3,327  from holding Planet Fitness or generate 82.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Planet Fitness  vs.  Caesars Entertainment,

Planet Fitness

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Planet Fitness are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Planet Fitness may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Caesars Entertainment,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caesars Entertainment, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Caesars Entertainment, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Planet Fitness and Caesars Entertainment,

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

The idea behind Planet Fitness and Caesars Entertainment, 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.