Correlation Between Xponential Fitness and DigiCom Berhad
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and DigiCom Berhad 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 DigiCom Berhad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and DigiCom Berhad, you can compare the effects of market volatilities on Xponential Fitness and DigiCom Berhad 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 DigiCom Berhad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and DigiCom Berhad.
Diversification Opportunities for Xponential Fitness and DigiCom Berhad
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xponential and DigiCom is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and DigiCom Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiCom Berhad 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 DigiCom Berhad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiCom Berhad has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and DigiCom Berhad go up and down completely randomly.
Pair Corralation between Xponential Fitness and DigiCom Berhad
If you would invest 1,261 in Xponential Fitness on September 4, 2024 and sell it today you would earn a total of 289.00 from holding Xponential Fitness or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Xponential Fitness vs. DigiCom Berhad
Performance |
| Timeline |
| Xponential Fitness |
| DigiCom Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xponential Fitness and DigiCom Berhad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and DigiCom Berhad
The main advantage of trading using opposite Xponential Fitness and DigiCom Berhad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, DigiCom Berhad 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 DigiCom Berhad will offset losses from the drop in DigiCom Berhad's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| DigiCom Berhad vs. Copa Holdings SA | DigiCom Berhad vs. SkyWest | DigiCom Berhad vs. Sun Country Airlines | DigiCom Berhad vs. Chemours 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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