Correlation Between Xponential Fitness and Aphria
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Aphria 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 Aphria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Aphria Inc, you can compare the effects of market volatilities on Xponential Fitness and Aphria 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 Aphria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Aphria.
Diversification Opportunities for Xponential Fitness and Aphria
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xponential and Aphria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Aphria Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aphria Inc 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 Aphria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aphria Inc has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Aphria go up and down completely randomly.
Pair Corralation between Xponential Fitness and Aphria
If you would invest (100.00) in Aphria Inc on December 10, 2024 and sell it today you would earn a total of 100.00 from holding Aphria Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xponential Fitness vs. Aphria Inc
Performance |
| Timeline |
| Xponential Fitness |
| Aphria Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xponential Fitness and Aphria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Aphria
The main advantage of trading using opposite Xponential Fitness and Aphria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Aphria 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 Aphria will offset losses from the drop in Aphria's long position.| Xponential Fitness vs. MGM Resorts International | Xponential Fitness vs. Caesars Entertainment | Xponential Fitness vs. Melco Resorts Entertainment | Xponential Fitness vs. Penn National Gaming |
| Aphria vs. Hafnia Limited | Aphria vs. BBB Foods | Aphria vs. Fomento Economico Mexicano | Aphria vs. Mesa Air Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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