Correlation Between Hybrid Kinetic and Xponential Fitness

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

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

Diversification Opportunities for Hybrid Kinetic and Xponential Fitness

0.0

Correlation Coefficient

Hybrid Kinetic  Xponential Fitness

Pay attention - limited upside

The 3 months correlation between Hybrid and Xponential is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hybrid Kinetic Group and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Hybrid Kinetic 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 Hybrid Kinetic Group are associated (or correlated) with Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Hybrid Kinetic i.e., Hybrid Kinetic and Xponential Fitness go up and down completely randomly.

Pair Corralation between Hybrid Kinetic and Xponential Fitness

If you would invest  0.50  in Hybrid Kinetic Group on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Hybrid Kinetic Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Hybrid Kinetic Group  vs.  Xponential Fitness

Hybrid Kinetic Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hybrid Kinetic Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hybrid Kinetic is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Xponential Fitness

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Hybrid Kinetic and Xponential Fitness

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

The idea behind Hybrid Kinetic Group and Xponential 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.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.