Correlation Between Xponential Fitness and EPR Properties

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

By analyzing existing cross correlation between Xponential Fitness and EPR Properties 5750, you can compare the effects of market volatilities on Xponential Fitness and EPR Properties 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 EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and EPR Properties.

Diversification Opportunities for Xponential Fitness and EPR Properties

-0.25

Correlation Coefficient

Xponential Fitness  EPR Properties

Very good diversification

The 3 months correlation between Xponential and EPR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and EPR Properties 5750 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties 5750 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 EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties 5750 has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and EPR Properties go up and down completely randomly.

Pair Corralation between Xponential Fitness and EPR Properties

Given the investment horizon of 90 days Xponential Fitness is expected to generate 3.94 times more return on investment than EPR Properties. However, Xponential Fitness is 3.94 times more volatile than EPR Properties 5750. It trades about 0.12 of its potential returns per unit of risk. EPR Properties 5750 is currently generating about -0.09 per unit of risk. If you would invest  1,230  in Xponential Fitness on October 24, 2024 and sell it today you would earn a total of  412.00  from holding Xponential Fitness or generate 33.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Xponential Fitness  vs.  EPR Properties 5750

Xponential Fitness

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Xponential Fitness are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Xponential Fitness reported solid returns over the last few months and may actually be approaching a breakup point.

EPR Properties 5750

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EPR Properties 5750 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Preferred Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Xponential Fitness and EPR Properties

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

The idea behind Xponential Fitness and EPR Properties 5750 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.