Correlation Between Xponential Fitness and Bright Scholar
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Bright Scholar 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 Bright Scholar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Bright Scholar Education, you can compare the effects of market volatilities on Xponential Fitness and Bright Scholar 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 Bright Scholar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Bright Scholar.
Diversification Opportunities for Xponential Fitness and Bright Scholar
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Bright is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Bright Scholar Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Scholar Education 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 Bright Scholar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Scholar Education has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Bright Scholar go up and down completely randomly.
Pair Corralation between Xponential Fitness and Bright Scholar
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.04 times more return on investment than Bright Scholar. However, Xponential Fitness is 1.04 times more volatile than Bright Scholar Education. It trades about 0.01 of its potential returns per unit of risk. Bright Scholar Education is currently generating about 0.01 per unit of risk. If you would invest 2,247 in Xponential Fitness on August 24, 2024 and sell it today you would lose (753.00) from holding Xponential Fitness or give up 33.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Xponential Fitness vs. Bright Scholar Education
Performance |
| Timeline |
| Xponential Fitness |
| Bright Scholar Education |
Xponential Fitness and Bright Scholar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Bright Scholar
The main advantage of trading using opposite Xponential Fitness and Bright Scholar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Bright Scholar 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 Bright Scholar will offset losses from the drop in Bright Scholar's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Bright Scholar vs. Laureate Education | Bright Scholar vs. China Liberal Education | Bright Scholar vs. Adtalem Global Education | Bright Scholar vs. Grand Canyon Education |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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