Correlation Between Flanigans Enterprises and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises 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 Flanigans Enterprises and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Xponential Fitness, you can compare the effects of market volatilities on Flanigans Enterprises 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 Flanigans Enterprises with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Xponential Fitness.
Diversification Opportunities for Flanigans Enterprises and Xponential Fitness
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flanigans and Xponential is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Flanigans Enterprises 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 Flanigans Enterprises 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 Flanigans Enterprises i.e., Flanigans Enterprises and Xponential Fitness go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Xponential Fitness
Considering the 90-day investment horizon Flanigans Enterprises is expected to generate 0.38 times more return on investment than Xponential Fitness. However, Flanigans Enterprises is 2.63 times less risky than Xponential Fitness. It trades about -0.12 of its potential returns per unit of risk. Xponential Fitness is currently generating about -0.14 per unit of risk. If you would invest 2,535 in Flanigans Enterprises on September 14, 2024 and sell it today you would lose (69.00) from holding Flanigans Enterprises or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Flanigans Enterprises vs. Xponential Fitness
Performance |
| Timeline |
| Flanigans Enterprises |
| Xponential Fitness |
Flanigans Enterprises and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flanigans Enterprises and Xponential Fitness
The main advantage of trading using opposite Flanigans Enterprises and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises 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.| Flanigans Enterprises vs. Good Times Restaurants | Flanigans Enterprises vs. Auburn National Bancorporation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |