Correlation Between Xponential Fitness and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Amkor Technology 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 Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Amkor Technology, you can compare the effects of market volatilities on Xponential Fitness and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Amkor Technology.
Diversification Opportunities for Xponential Fitness and Amkor Technology
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Amkor is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Amkor Technology go up and down completely randomly.
Pair Corralation between Xponential Fitness and Amkor Technology
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.76 times more return on investment than Amkor Technology. However, Xponential Fitness is 2.76 times more volatile than Amkor Technology. It trades about 0.15 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.17 per unit of risk. If you would invest 1,230 in Xponential Fitness on August 25, 2024 and sell it today you would earn a total of 264.00 from holding Xponential Fitness or generate 21.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Amkor Technology
Performance |
| Timeline |
| Xponential Fitness |
| Amkor Technology |
Xponential Fitness and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Amkor Technology
The main advantage of trading using opposite Xponential Fitness and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Amkor Technology vs. Teradyne | Amkor Technology vs. Ichor Holdings | Amkor Technology vs. Amtech Systems | Amkor Technology vs. Veeco Instruments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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