Correlation Between SeaWorld Entertainment and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both SeaWorld Entertainment 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 SeaWorld Entertainment and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeaWorld Entertainment and Xponential Fitness, you can compare the effects of market volatilities on SeaWorld Entertainment 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 SeaWorld Entertainment with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeaWorld Entertainment and Xponential Fitness.
Diversification Opportunities for SeaWorld Entertainment and Xponential Fitness
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SeaWorld and Xponential is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SeaWorld Entertainment and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and SeaWorld Entertainment 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 SeaWorld Entertainment 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 SeaWorld Entertainment i.e., SeaWorld Entertainment and Xponential Fitness go up and down completely randomly.
Pair Corralation between SeaWorld Entertainment and Xponential Fitness
If you would invest 1,313 in Xponential Fitness on August 24, 2024 and sell it today you would earn a total of 124.00 from holding Xponential Fitness or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
SeaWorld Entertainment vs. Xponential Fitness
Performance |
| Timeline |
| SeaWorld Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xponential Fitness |
SeaWorld Entertainment and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeaWorld Entertainment and Xponential Fitness
The main advantage of trading using opposite SeaWorld Entertainment and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeaWorld Entertainment 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.| SeaWorld Entertainment vs. JAKKS Pacific | SeaWorld Entertainment vs. OneSpaWorld Holdings | SeaWorld Entertainment vs. Clarus Corp | SeaWorld Entertainment vs. Six Flags Entertainment |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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