Correlation Between Xponential Fitness and BOS Better
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and BOS Better 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 BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and BOS Better Online, you can compare the effects of market volatilities on Xponential Fitness and BOS Better 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 BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and BOS Better.
Diversification Opportunities for Xponential Fitness and BOS Better
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and BOS is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online 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 BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and BOS Better go up and down completely randomly.
Pair Corralation between Xponential Fitness and BOS Better
Given the investment horizon of 90 days Xponential Fitness is expected to generate 3.34 times more return on investment than BOS Better. However, Xponential Fitness is 3.34 times more volatile than BOS Better Online. It trades about 0.04 of its potential returns per unit of risk. BOS Better Online is currently generating about 0.06 per unit of risk. If you would invest 1,219 in Xponential Fitness on September 2, 2024 and sell it today you would earn a total of 305.00 from holding Xponential Fitness or generate 25.02% 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. BOS Better Online
Performance |
| Timeline |
| Xponential Fitness |
| BOS Better Online |
Xponential Fitness and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and BOS Better
The main advantage of trading using opposite Xponential Fitness and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.The idea behind Xponential Fitness and BOS Better Online pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BOS Better vs. Mynaric AG ADR | BOS Better vs. Knowles Cor | BOS Better vs. Comtech Telecommunications Corp | BOS Better vs. Ituran Location and |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |