Correlation Between Xponential Fitness and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and National CineMedia 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 National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and National CineMedia, you can compare the effects of market volatilities on Xponential Fitness and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and National CineMedia.
Diversification Opportunities for Xponential Fitness and National CineMedia
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xponential and National is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and National CineMedia go up and down completely randomly.
Pair Corralation between Xponential Fitness and National CineMedia
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the National CineMedia. In addition to that, Xponential Fitness is 1.73 times more volatile than National CineMedia. It trades about -0.05 of its total potential returns per unit of risk. National CineMedia is currently generating about -0.06 per unit of volatility. If you would invest 730.00 in National CineMedia on December 2, 2024 and sell it today you would lose (61.00) from holding National CineMedia or give up 8.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xponential Fitness vs. National CineMedia
Performance |
Timeline |
Xponential Fitness |
National CineMedia |
Xponential Fitness and National CineMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xponential Fitness and National CineMedia
The main advantage of trading using opposite Xponential Fitness and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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