Correlation Between Click Holdings and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Click Holdings 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 Click Holdings and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Click Holdings Limited and Xponential Fitness, you can compare the effects of market volatilities on Click Holdings 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 Click Holdings with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Click Holdings and Xponential Fitness.
Diversification Opportunities for Click Holdings and Xponential Fitness
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Click and Xponential is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Click Holdings Limited and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Click Holdings 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 Click Holdings Limited 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 Click Holdings i.e., Click Holdings and Xponential Fitness go up and down completely randomly.
Pair Corralation between Click Holdings and Xponential Fitness
Given the investment horizon of 90 days Click Holdings is expected to generate 5.17 times less return on investment than Xponential Fitness. In addition to that, Click Holdings is 1.96 times more volatile than Xponential Fitness. It trades about 0.01 of its total potential returns per unit of risk. Xponential Fitness is currently generating about 0.1 per unit of volatility. If you would invest 1,205 in Xponential Fitness on September 13, 2024 and sell it today you would earn a total of 233.00 from holding Xponential Fitness or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Click Holdings Limited vs. Xponential Fitness
Performance |
| Timeline |
| Click Holdings |
| Xponential Fitness |
Click Holdings and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Click Holdings and Xponential Fitness
The main advantage of trading using opposite Click Holdings and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Click Holdings 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.| Click Holdings vs. Xponential Fitness | Click Holdings vs. Compania Cervecerias Unidas | Click Holdings vs. Fomento Economico Mexicano | Click Holdings vs. Ambev SA ADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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