Correlation Between Xponential Fitness and Genfit

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

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

Diversification Opportunities for Xponential Fitness and Genfit

-0.53

Correlation Coefficient

Xponential Fitness  Genfit

Excellent diversification

The 3 months correlation between Xponential and Genfit is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Genfit go up and down completely randomly.

Pair Corralation between Xponential Fitness and Genfit

Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.41 times more return on investment than Genfit. However, Xponential Fitness is 1.41 times more volatile than Genfit. It trades about 0.01 of its potential returns per unit of risk. Genfit is currently generating about 0.01 per unit of risk. If you would invest  2,382  in Xponential Fitness on October 15, 2024 and sell it today you would lose (887.00) from holding Xponential Fitness or give up 37.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Xponential Fitness  vs.  Genfit

Xponential Fitness

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Xponential Fitness are ranked lower than 7 (%) 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.

Genfit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genfit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Xponential Fitness and Genfit

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

The idea behind Xponential Fitness and Genfit 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.