Correlation Between Gap, and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Gap, 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 Gap, and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Xponential Fitness, you can compare the effects of market volatilities on Gap, 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 Gap, with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Xponential Fitness.
Diversification Opportunities for Gap, and Xponential Fitness
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gap, and Xponential is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Gap, 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 The Gap, 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 Gap, i.e., Gap, and Xponential Fitness go up and down completely randomly.
Pair Corralation between Gap, and Xponential Fitness
Considering the 90-day investment horizon The Gap, is expected to generate 0.67 times more return on investment than Xponential Fitness. However, The Gap, is 1.5 times less risky than Xponential Fitness. It trades about 0.05 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.01 per unit of risk. If you would invest 1,281 in The Gap, on September 2, 2024 and sell it today you would earn a total of 1,144 from holding The Gap, or generate 89.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. Xponential Fitness
Performance |
| Timeline |
| Gap, |
| Xponential Fitness |
Gap, and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Xponential Fitness
The main advantage of trading using opposite Gap, and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, 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.| Gap, vs. Boot Barn Holdings | Gap, vs. BJs Restaurants | Gap, vs. The Cheesecake Factory | Gap, vs. GEN Restaurant Group, |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |