Correlation Between Sligro Food and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Sligro Food 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 Sligro Food and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and Xponential Fitness, you can compare the effects of market volatilities on Sligro Food 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 Sligro Food with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Xponential Fitness.
Diversification Opportunities for Sligro Food and Xponential Fitness
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sligro and Xponential is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Sligro Food 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 Sligro Food Group 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 Sligro Food i.e., Sligro Food and Xponential Fitness go up and down completely randomly.
Pair Corralation between Sligro Food and Xponential Fitness
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the Xponential Fitness. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 4.1 times less risky than Xponential Fitness. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Xponential Fitness is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,383 in Xponential Fitness on October 13, 2024 and sell it today you would lose (888.00) from holding Xponential Fitness or give up 37.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.15% |
| Values | Daily Returns |
Sligro Food Group vs. Xponential Fitness
Performance |
| Timeline |
| Sligro Food Group |
| Xponential Fitness |
Sligro Food and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Xponential Fitness
The main advantage of trading using opposite Sligro Food and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food 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.| Sligro Food vs. AKITA Drilling | Sligro Food vs. Stagwell | Sligro Food vs. Awilco Drilling PLC | Sligro Food vs. National CineMedia |
| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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