Correlation Between JAKKS Pacific and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both JAKKS Pacific 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 JAKKS Pacific and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAKKS Pacific and Xponential Fitness, you can compare the effects of market volatilities on JAKKS Pacific 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 JAKKS Pacific with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAKKS Pacific and Xponential Fitness.
Diversification Opportunities for JAKKS Pacific and Xponential Fitness
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JAKKS and Xponential is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding JAKKS Pacific and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and JAKKS Pacific 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 JAKKS Pacific 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 JAKKS Pacific i.e., JAKKS Pacific and Xponential Fitness go up and down completely randomly.
Pair Corralation between JAKKS Pacific and Xponential Fitness
Given the investment horizon of 90 days JAKKS Pacific is expected to generate 0.71 times more return on investment than Xponential Fitness. However, JAKKS Pacific is 1.41 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 0.01 per unit of risk. If you would invest 1,756 in JAKKS Pacific on August 27, 2024 and sell it today you would earn a total of 1,023 from holding JAKKS Pacific or generate 58.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JAKKS Pacific vs. Xponential Fitness
Performance |
| Timeline |
| JAKKS Pacific |
| Xponential Fitness |
JAKKS Pacific and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAKKS Pacific and Xponential Fitness
The main advantage of trading using opposite JAKKS Pacific and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAKKS Pacific 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.| JAKKS Pacific vs. Escalade Incorporated | JAKKS Pacific vs. Clarus Corp | JAKKS Pacific vs. Six Flags Entertainment | JAKKS Pacific vs. American Outdoor Brands |
| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |