Correlation Between Univest Pennsylvania and Xponential Fitness
Can any of the company-specific risk be diversified away by investing in both Univest Pennsylvania 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 Univest Pennsylvania and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univest Pennsylvania and Xponential Fitness, you can compare the effects of market volatilities on Univest Pennsylvania 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 Univest Pennsylvania with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univest Pennsylvania and Xponential Fitness.
Diversification Opportunities for Univest Pennsylvania and Xponential Fitness
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Univest and Xponential is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Univest Pennsylvania and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and Univest Pennsylvania 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 Univest Pennsylvania 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 Univest Pennsylvania i.e., Univest Pennsylvania and Xponential Fitness go up and down completely randomly.
Pair Corralation between Univest Pennsylvania and Xponential Fitness
Given the investment horizon of 90 days Univest Pennsylvania is expected to generate 0.41 times more return on investment than Xponential Fitness. However, Univest Pennsylvania is 2.42 times less risky than Xponential Fitness. It trades about 0.03 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.01 per unit of risk. If you would invest 2,473 in Univest Pennsylvania on August 28, 2024 and sell it today you would earn a total of 731.00 from holding Univest Pennsylvania or generate 29.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Univest Pennsylvania vs. Xponential Fitness
Performance |
| Timeline |
| Univest Pennsylvania |
| Xponential Fitness |
Univest Pennsylvania and Xponential Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univest Pennsylvania and Xponential Fitness
The main advantage of trading using opposite Univest Pennsylvania and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univest Pennsylvania 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.| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic Bancorp |
| 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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