Correlation Between Xponential Fitness and NYSE New
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and NYSE New 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 NYSE New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and NYSE New Highs, you can compare the effects of market volatilities on Xponential Fitness and NYSE New 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 NYSE New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and NYSE New.
Diversification Opportunities for Xponential Fitness and NYSE New
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and NYSE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and NYSE New Highs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE New Highs 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 NYSE New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE New Highs has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and NYSE New go up and down completely randomly.
Pair Corralation between Xponential Fitness and NYSE New
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the NYSE New. But the stock apears to be less risky and, when comparing its historical volatility, Xponential Fitness is 14.2 times less risky than NYSE New. The stock trades about -0.05 of its potential returns per unit of risk. The NYSE New Highs is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 8,100 in NYSE New Highs on December 3, 2024 and sell it today you would lose (2,800) from holding NYSE New Highs or give up 34.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xponential Fitness vs. NYSE New Highs
Performance |
Timeline |
Xponential Fitness and NYSE New Volatility Contrast
Predicted Return Density |
Returns |
Xponential Fitness
Pair trading matchups for Xponential Fitness
NYSE New Highs
Pair trading matchups for NYSE New
Pair Trading with Xponential Fitness and NYSE New
The main advantage of trading using opposite Xponential Fitness and NYSE New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, NYSE New 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 NYSE New will offset losses from the drop in NYSE New's long position.Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
NYSE New vs. Black Spade Acquisition | NYSE New vs. Altair Engineering | NYSE New vs. Grupo Aeroportuario del | NYSE New vs. Corporacion America Airports |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Commodity Directory Find actively traded commodities issued by global exchanges |