Correlation Between Artisan Partners and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Artisan Partners and Xponential Fitness 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 Artisan Partners and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Partners Asset and Xponential Fitness, you can compare the effects of market volatilities on Artisan Partners and Xponential Fitness 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 Artisan Partners with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Partners and Xponential Fitness.
Diversification Opportunities for Artisan Partners and Xponential Fitness
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Xponential is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Partners Asset and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Artisan Partners 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 Artisan Partners Asset are associated (or correlated) with Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of Artisan Partners i.e., Artisan Partners and Xponential Fitness go up and down completely randomly.
Pair Corralation between Artisan Partners and Xponential Fitness
Given the investment horizon of 90 days Artisan Partners is expected to generate 1.53 times less return on investment than Xponential Fitness. But when comparing it to its historical volatility, Artisan Partners Asset is 2.61 times less risky than Xponential Fitness. It trades about 0.19 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,276 in Xponential Fitness on September 4, 2024 and sell it today you would earn a total of 274.00 from holding Xponential Fitness or generate 21.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Partners Asset vs. Xponential Fitness
Performance |
| Timeline |
| Artisan Partners Asset |
| Xponential Fitness |
Artisan Partners and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Partners and Xponential Fitness
The main advantage of trading using opposite Artisan Partners and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Partners position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.| Artisan Partners vs. Visa Class A | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. Associated Capital Group | Artisan Partners vs. Brookfield Corp |
| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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