Correlation Between Xponential Fitness and Marblegate Acquisition

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

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

Diversification Opportunities for Xponential Fitness and Marblegate Acquisition

0.44

Correlation Coefficient

Xponential Fitness  Marblegate Acquisition

Very weak diversification

The 3 months correlation between Xponential and Marblegate is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate Acquisition 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 Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Marblegate Acquisition go up and down completely randomly.

Pair Corralation between Xponential Fitness and Marblegate Acquisition

Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the Marblegate Acquisition. In addition to that, Xponential Fitness is 2.6 times more volatile than Marblegate Acquisition Corp. It trades about -0.02 of its total potential returns per unit of risk. Marblegate Acquisition Corp is currently generating about 0.02 per unit of volatility. If you would invest  1,062  in Marblegate Acquisition Corp on September 30, 2024 and sell it today you would earn a total of  39.00  from holding Marblegate Acquisition Corp or generate 3.67% return on investment over 90 days.

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

Xponential Fitness  vs.  Marblegate Acquisition Corp

Xponential Fitness

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Xponential Fitness are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Xponential Fitness may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Marblegate Acquisition

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Marblegate Acquisition Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Marblegate Acquisition is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Xponential Fitness and Marblegate Acquisition

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

The idea behind Xponential Fitness and Marblegate Acquisition Corp 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 Transaction History module to view history of all your transactions and understand their impact on performance.