Correlation Between Genfit and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Genfit 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 Genfit and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genfit and Xponential Fitness, you can compare the effects of market volatilities on Genfit 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 Genfit with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genfit and Xponential Fitness.
Diversification Opportunities for Genfit and Xponential Fitness
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genfit and Xponential is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Genfit and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Genfit 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 Genfit 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 Genfit i.e., Genfit and Xponential Fitness go up and down completely randomly.
Pair Corralation between Genfit and Xponential Fitness
Given the investment horizon of 90 days Genfit is expected to generate 2.16 times less return on investment than Xponential Fitness. But when comparing it to its historical volatility, Genfit is 1.45 times less risky than Xponential Fitness. It trades about 0.04 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Xponential Fitness on September 3, 2024 and sell it today you would earn a total of 490.00 from holding Xponential Fitness or generate 46.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genfit vs. Xponential Fitness
Performance |
| Timeline |
| Genfit |
| Xponential Fitness |
Genfit and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genfit and Xponential Fitness
The main advantage of trading using opposite Genfit and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genfit 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.| Genfit vs. Eliem Therapeutics | Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova |
| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Mattel Inc | Xponential Fitness vs. OneSpaWorld Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |