Correlation Between Planet Fitness and Life Time
Can any of the company-specific risk be diversified away by investing in both Planet Fitness and Life Time 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 Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Fitness and Life Time Group, you can compare the effects of market volatilities on Planet Fitness and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Fitness and Life Time.
Diversification Opportunities for Planet Fitness and Life Time
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Planet and Life is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Planet Fitness and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Planet Fitness i.e., Planet Fitness and Life Time go up and down completely randomly.
Pair Corralation between Planet Fitness and Life Time
Given the investment horizon of 90 days Planet Fitness is expected to generate 1.87 times less return on investment than Life Time. But when comparing it to its historical volatility, Planet Fitness is 1.42 times less risky than Life Time. It trades about 0.03 of its potential returns per unit of risk. Life Time Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,804 in Life Time Group on June 8, 2025 and sell it today you would earn a total of 94.00 from holding Life Time Group or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Planet Fitness vs. Life Time Group
Performance |
| Timeline |
| Planet Fitness |
| Life Time Group |
Planet Fitness and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Fitness and Life Time
The main advantage of trading using opposite Planet Fitness and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Fitness position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Planet Fitness vs. Five Below | Planet Fitness vs. Six Flags Entertainment | Planet Fitness vs. Life Time Group | Planet Fitness vs. Mattel Inc |
| Life Time vs. Xponential Fitness | Life Time vs. Planet Fitness | Life Time vs. Lucky Strike Entertainment | Life Time vs. JAKKS Pacific |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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