Correlation Between F45 Training and YETI Holdings

Can any of the company-specific risk be diversified away by investing in both F45 Training and YETI Holdings 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 F45 Training and YETI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between F45 Training Holdings and YETI Holdings, you can compare the effects of market volatilities on F45 Training and YETI Holdings 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 F45 Training with a short position of YETI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and YETI Holdings.

Diversification Opportunities for F45 Training and YETI Holdings

0.47

Correlation Coefficient

F45 Training  YETI Holdings

Very weak diversification

The 3 months correlation between F45 and YETI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training Holdings and YETI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YETI Holdings and F45 Training 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 F45 Training Holdings are associated (or correlated) with YETI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YETI Holdings has no effect on the direction of F45 Training i.e., F45 Training and YETI Holdings go up and down completely randomly.

Pair Corralation between F45 Training and YETI Holdings

If you would invest  4,032  in YETI Holdings on August 30, 2024 and sell it today you would earn a total of  1.00  from holding YETI Holdings or generate 0.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

F45 Training Holdings  vs.  YETI Holdings

F45 Training Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days F45 Training Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, F45 Training is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

YETI Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days YETI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, YETI Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with F45 Training and YETI Holdings

The main advantage of trading using opposite F45 Training and YETI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training position performs unexpectedly, YETI Holdings 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 YETI Holdings will offset losses from the drop in YETI Holdings' long position.

The idea behind F45 Training Holdings and YETI Holdings 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.