Correlation Between Xponential Fitness and Ameriprise Financial
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Ameriprise Financial 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 Ameriprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Ameriprise Financial, you can compare the effects of market volatilities on Xponential Fitness and Ameriprise Financial 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 Ameriprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Ameriprise Financial.
Diversification Opportunities for Xponential Fitness and Ameriprise Financial
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and Ameriprise is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Ameriprise Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameriprise Financial 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 Ameriprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameriprise Financial has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Ameriprise Financial go up and down completely randomly.
Pair Corralation between Xponential Fitness and Ameriprise Financial
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.7 times more return on investment than Ameriprise Financial. However, Xponential Fitness is 2.7 times more volatile than Ameriprise Financial. It trades about 0.11 of its potential returns per unit of risk. Ameriprise Financial is currently generating about 0.19 per unit of risk. If you would invest 1,276 in Xponential Fitness on September 4, 2024 and sell it today you would earn a total of 274.00 from holding Xponential Fitness or generate 21.47% 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. Ameriprise Financial
Performance |
| Timeline |
| Xponential Fitness |
| Ameriprise Financial |
Xponential Fitness and Ameriprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Ameriprise Financial
The main advantage of trading using opposite Xponential Fitness and Ameriprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Ameriprise Financial 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 Ameriprise Financial will offset losses from the drop in Ameriprise Financial's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| Ameriprise Financial vs. Visa Class A | Ameriprise Financial vs. Diamond Hill Investment | Ameriprise Financial vs. Associated Capital Group | Ameriprise Financial vs. Brookfield 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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