Correlation Between Playa Hotels and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Playa Hotels 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 Playa Hotels and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playa Hotels Resorts and Xponential Fitness, you can compare the effects of market volatilities on Playa Hotels 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 Playa Hotels with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Xponential Fitness.
Diversification Opportunities for Playa Hotels and Xponential Fitness
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Playa and Xponential is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Playa Hotels 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 Playa Hotels Resorts 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 Playa Hotels i.e., Playa Hotels and Xponential Fitness go up and down completely randomly.
Pair Corralation between Playa Hotels and Xponential Fitness
Given the investment horizon of 90 days Playa Hotels Resorts is expected to generate 0.3 times more return on investment than Xponential Fitness. However, Playa Hotels Resorts is 3.31 times less risky than Xponential Fitness. It trades about 0.29 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.09 per unit of risk. If you would invest 848.00 in Playa Hotels Resorts on August 24, 2024 and sell it today you would earn a total of 121.00 from holding Playa Hotels Resorts or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Xponential Fitness
Performance |
| Timeline |
| Playa Hotels Resorts |
| Xponential Fitness |
Playa Hotels and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Xponential Fitness
The main advantage of trading using opposite Playa Hotels and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels 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.| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Ballys Corp |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |