Correlation Between Sonida Senior and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and Xponential Fitness, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Xponential Fitness.
Diversification Opportunities for Sonida Senior and Xponential Fitness
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonida and Xponential is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and Xponential Fitness go up and down completely randomly.
Pair Corralation between Sonida Senior and Xponential Fitness
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 0.87 times more return on investment than Xponential Fitness. However, Sonida Senior Living is 1.14 times less risky than Xponential Fitness. It trades about 0.09 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.03 per unit of risk. If you would invest 1,058 in Sonida Senior Living on August 24, 2024 and sell it today you would earn a total of 1,386 from holding Sonida Senior Living or generate 131.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonida Senior Living vs. Xponential Fitness
Performance |
| Timeline |
| Sonida Senior Living |
| Xponential Fitness |
Sonida Senior and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Xponential Fitness
The main advantage of trading using opposite Sonida Senior and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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