Correlation Between XFit Brands and Sonos
Can any of the company-specific risk be diversified away by investing in both XFit Brands and Sonos 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 XFit Brands and Sonos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XFit Brands and Sonos Inc, you can compare the effects of market volatilities on XFit Brands and Sonos 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 XFit Brands with a short position of Sonos. Check out your portfolio center. Please also check ongoing floating volatility patterns of XFit Brands and Sonos.
Diversification Opportunities for XFit Brands and Sonos
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between XFit and Sonos is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding XFit Brands and Sonos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonos Inc and XFit Brands 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 XFit Brands are associated (or correlated) with Sonos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonos Inc has no effect on the direction of XFit Brands i.e., XFit Brands and Sonos go up and down completely randomly.
Pair Corralation between XFit Brands and Sonos
If you would invest 0.10 in XFit Brands on November 29, 2024 and sell it today you would earn a total of 0.00 from holding XFit Brands or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XFit Brands vs. Sonos Inc
Performance |
| Timeline |
| XFit Brands |
| Sonos Inc |
XFit Brands and Sonos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XFit Brands and Sonos
The main advantage of trading using opposite XFit Brands and Sonos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XFit Brands position performs unexpectedly, Sonos 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 Sonos will offset losses from the drop in Sonos' long position.| XFit Brands vs. Sligro Food Group | XFit Brands vs. Tradeshow Marketing | XFit Brands vs. Academy Sports Outdoors | XFit Brands vs. BBB Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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