Correlation Between MSP Recovery and Planet Fitness

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

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

Diversification Opportunities for MSP Recovery and Planet Fitness

0.62

Correlation Coefficient

MSP Recovery  Planet Fitness

Poor diversification

The 3 months correlation between MSP and Planet is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MSP Recovery and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and MSP Recovery 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 MSP Recovery 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 MSP Recovery i.e., MSP Recovery and Planet Fitness go up and down completely randomly.

Pair Corralation between MSP Recovery and Planet Fitness

Given the investment horizon of 90 days MSP Recovery is expected to under-perform the Planet Fitness. In addition to that, MSP Recovery is 8.04 times more volatile than Planet Fitness. It trades about -0.34 of its total potential returns per unit of risk. Planet Fitness is currently generating about -0.2 per unit of volatility. If you would invest  11,028  in Planet Fitness on August 2, 2025 and sell it today you would lose (2,030) from holding Planet Fitness or give up 18.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

MSP Recovery  vs.  Planet Fitness

MSP Recovery

Risk-Adjusted Performance

Weakest

Over the last 90 days MSP Recovery has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Planet Fitness

Risk-Adjusted Performance

Weakest

Over the last 90 days Planet Fitness has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with MSP Recovery and Planet Fitness

The main advantage of trading using opposite MSP Recovery and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP Recovery 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.

The idea behind MSP Recovery and Planet Fitness 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.