Correlation Between Xponential Fitness and CXApp

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

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

Diversification Opportunities for Xponential Fitness and CXApp

0.04

Correlation Coefficient

Xponential Fitness  CXApp

Significant diversification

The 3 months correlation between Xponential and CXApp is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Xponential 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 Xponential Fitness are associated (or correlated) with CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and CXApp go up and down completely randomly.

Pair Corralation between Xponential Fitness and CXApp

Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.3 times more return on investment than CXApp. However, Xponential Fitness is 1.3 times more volatile than CXApp Inc. It trades about -0.06 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.08 per unit of risk. If you would invest  1,295  in Xponential Fitness on December 23, 2024 and sell it today you would lose (429.00) from holding Xponential Fitness or give up 33.13% of portfolio value over 90 days.

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

Xponential Fitness  vs.  CXApp Inc

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.

CXApp Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Xponential Fitness and CXApp

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

The idea behind Xponential Fitness and CXApp Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.