Correlation Between F45 Training and ZKH Group
Can any of the company-specific risk be diversified away by investing in both F45 Training and ZKH Group 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 F45 Training and ZKH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between F45 Training Holdings and ZKH Group Limited, you can compare the effects of market volatilities on F45 Training and ZKH Group 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 F45 Training with a short position of ZKH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of F45 Training and ZKH Group.
Diversification Opportunities for F45 Training and ZKH Group
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between F45 and ZKH is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding F45 Training Holdings and ZKH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKH Group Limited and F45 Training 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 F45 Training Holdings are associated (or correlated) with ZKH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKH Group Limited has no effect on the direction of F45 Training i.e., F45 Training and ZKH Group go up and down completely randomly.
Pair Corralation between F45 Training and ZKH Group
Given the investment horizon of 90 days F45 Training Holdings is expected to under-perform the ZKH Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, F45 Training Holdings is 1.16 times less risky than ZKH Group. The pink sheet trades about -0.19 of its potential returns per unit of risk. The ZKH Group Limited is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,550 in ZKH Group Limited on August 31, 2024 and sell it today you would lose (1,208) from holding ZKH Group Limited or give up 77.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.9% |
| Values | Daily Returns |
F45 Training Holdings vs. ZKH Group Limited
Performance |
| Timeline |
| F45 Training Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ZKH Group Limited |
F45 Training and ZKH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F45 Training and ZKH Group
The main advantage of trading using opposite F45 Training and ZKH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F45 Training position performs unexpectedly, ZKH Group 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 ZKH Group will offset losses from the drop in ZKH Group's long position.| F45 Training vs. Life Time Group | F45 Training vs. Bowlero Corp | F45 Training vs. Planet Fitness | F45 Training vs. JAKKS Pacific |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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