Correlation Between Xponential Fitness and Albertsons Companies
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Albertsons Companies 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 Albertsons Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Albertsons Companies, you can compare the effects of market volatilities on Xponential Fitness and Albertsons Companies 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 Albertsons Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Albertsons Companies.
Diversification Opportunities for Xponential Fitness and Albertsons Companies
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and Albertsons is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Albertsons Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albertsons Companies 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 Albertsons Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albertsons Companies has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Albertsons Companies go up and down completely randomly.
Pair Corralation between Xponential Fitness and Albertsons Companies
Given the investment horizon of 90 days Xponential Fitness is expected to generate 5.07 times more return on investment than Albertsons Companies. However, Xponential Fitness is 5.07 times more volatile than Albertsons Companies. It trades about 0.03 of its potential returns per unit of risk. Albertsons Companies is currently generating about -0.04 per unit of risk. If you would invest 1,265 in Xponential Fitness on September 25, 2024 and sell it today you would earn a total of 27.00 from holding Xponential Fitness or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Albertsons Companies
Performance |
| Timeline |
| Xponential Fitness |
| Albertsons Companies |
Xponential Fitness and Albertsons Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Albertsons Companies
The main advantage of trading using opposite Xponential Fitness and Albertsons Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Albertsons Companies 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 Albertsons Companies will offset losses from the drop in Albertsons Companies' long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| Albertsons Companies vs. Krispy Kreme | Albertsons Companies vs. Sendas Distribuidora SA | Albertsons Companies vs. Ocado Group plc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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