Correlation Between Xponential Fitness and Lincoln Educational
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Lincoln Educational 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 Lincoln Educational into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Lincoln Educational Services, you can compare the effects of market volatilities on Xponential Fitness and Lincoln Educational 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 Lincoln Educational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Lincoln Educational.
Diversification Opportunities for Xponential Fitness and Lincoln Educational
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xponential and Lincoln is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Lincoln Educational Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Educational 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 Lincoln Educational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Educational has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Lincoln Educational go up and down completely randomly.
Pair Corralation between Xponential Fitness and Lincoln Educational
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the Lincoln Educational. In addition to that, Xponential Fitness is 1.17 times more volatile than Lincoln Educational Services. It trades about -0.03 of its total potential returns per unit of risk. Lincoln Educational Services is currently generating about 0.08 per unit of volatility. If you would invest 1,615 in Lincoln Educational Services on December 4, 2024 and sell it today you would earn a total of 204.00 from holding Lincoln Educational Services or generate 12.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xponential Fitness vs. Lincoln Educational Services
Performance |
Timeline |
Xponential Fitness |
Lincoln Educational |
Xponential Fitness and Lincoln Educational Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xponential Fitness and Lincoln Educational
The main advantage of trading using opposite Xponential Fitness and Lincoln Educational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Lincoln Educational 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 Lincoln Educational will offset losses from the drop in Lincoln Educational's long position.Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
Lincoln Educational vs. Vasta Platform | Lincoln Educational vs. Laureate Education | Lincoln Educational vs. American Public Education | Lincoln Educational vs. Adtalem Global Education |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Valuation Check real value of public entities based on technical and fundamental data |