Correlation Between Xponential Fitness and Carmell Therapeutics
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Carmell Therapeutics 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 Carmell Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Carmell Therapeutics, you can compare the effects of market volatilities on Xponential Fitness and Carmell Therapeutics 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 Carmell Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Carmell Therapeutics.
Diversification Opportunities for Xponential Fitness and Carmell Therapeutics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Carmell is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Carmell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carmell Therapeutics 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 Carmell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carmell Therapeutics has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Carmell Therapeutics go up and down completely randomly.
Pair Corralation between Xponential Fitness and Carmell Therapeutics
Given the investment horizon of 90 days Xponential Fitness is expected to generate 0.56 times more return on investment than Carmell Therapeutics. However, Xponential Fitness is 1.79 times less risky than Carmell Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Carmell Therapeutics is currently generating about -0.05 per unit of risk. If you would invest 1,983 in Xponential Fitness on September 12, 2024 and sell it today you would lose (525.00) from holding Xponential Fitness or give up 26.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Carmell Therapeutics
Performance |
| Timeline |
| Xponential Fitness |
| Carmell Therapeutics |
Xponential Fitness and Carmell Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Carmell Therapeutics
The main advantage of trading using opposite Xponential Fitness and Carmell Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Carmell Therapeutics 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 Carmell Therapeutics will offset losses from the drop in Carmell Therapeutics' long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Carmell Therapeutics vs. Revelation Biosciences | Carmell Therapeutics vs. Virax Biolabs Group | Carmell Therapeutics vs. Neurobo Pharmaceuticals | Carmell Therapeutics vs. Allarity Therapeutics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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