Correlation Between Xponential Fitness and Able View
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Able View 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 Xponential Fitness and Able View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Able View Global, you can compare the effects of market volatilities on Xponential Fitness and Able View 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 Xponential Fitness with a short position of Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Able View.
Diversification Opportunities for Xponential Fitness and Able View
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Able is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global and Xponential Fitness 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 Xponential Fitness are associated (or correlated) with Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Able View go up and down completely randomly.
Pair Corralation between Xponential Fitness and Able View
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.08 times more return on investment than Able View. However, Xponential Fitness is 1.08 times more volatile than Able View Global. It trades about 0.02 of its potential returns per unit of risk. Able View Global is currently generating about -0.17 per unit of risk. If you would invest 1,423 in Xponential Fitness on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Xponential Fitness or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Able View Global
Performance |
| Timeline |
| Xponential Fitness |
| Able View Global |
Xponential Fitness and Able View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Able View
The main advantage of trading using opposite Xponential Fitness and Able View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Able View 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 Able View will offset losses from the drop in Able View's long position.| Xponential Fitness vs. Nathans Famous | Xponential Fitness vs. Flanigans Enterprises | Xponential Fitness vs. Good Times Restaurants | Xponential Fitness vs. Auburn National Bancorporation |
| Able View vs. Alvarium Tiedemann Holdings | Able View vs. Bluerock Homes Trust | Able View vs. Yum Brands | Able View vs. Dennys 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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