Correlation Between Xponential Fitness and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and CompuGroup Medical 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 CompuGroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and CompuGroup Medical SE, you can compare the effects of market volatilities on Xponential Fitness and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and CompuGroup Medical.
Diversification Opportunities for Xponential Fitness and CompuGroup Medical
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xponential and CompuGroup is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Xponential Fitness and CompuGroup Medical
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the CompuGroup Medical. In addition to that, Xponential Fitness is 41.68 times more volatile than CompuGroup Medical SE. It trades about -0.33 of its total potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.22 per unit of volatility. If you would invest 2,375 in CompuGroup Medical SE on December 4, 2024 and sell it today you would earn a total of 10.00 from holding CompuGroup Medical SE or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xponential Fitness vs. CompuGroup Medical SE
Performance |
| Timeline |
| Xponential Fitness |
| CompuGroup Medical |
Xponential Fitness and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and CompuGroup Medical
The main advantage of trading using opposite Xponential Fitness and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| CompuGroup Medical vs. Acme United | CompuGroup Medical vs. Estee Lauder Companies | CompuGroup Medical vs. Timken Company | CompuGroup Medical vs. Toro Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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