Correlation Between Xponential Fitness and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Dalata Hotel 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 Dalata Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Dalata Hotel Group, you can compare the effects of market volatilities on Xponential Fitness and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Dalata Hotel.
Diversification Opportunities for Xponential Fitness and Dalata Hotel
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xponential and Dalata is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Dalata Hotel go up and down completely randomly.
Pair Corralation between Xponential Fitness and Dalata Hotel
Given the investment horizon of 90 days Xponential Fitness is expected to generate 76.53 times more return on investment than Dalata Hotel. However, Xponential Fitness is 76.53 times more volatile than Dalata Hotel Group. It trades about 0.09 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about 0.09 per unit of risk. If you would invest 985.00 in Xponential Fitness on September 3, 2024 and sell it today you would earn a total of 539.00 from holding Xponential Fitness or generate 54.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Dalata Hotel Group
Performance |
| Timeline |
| Xponential Fitness |
| Dalata Hotel Group |
Xponential Fitness and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Dalata Hotel
The main advantage of trading using opposite Xponential Fitness and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Mattel Inc | Xponential Fitness vs. OneSpaWorld Holdings |
| Dalata Hotel vs. United Parks Resorts | Dalata Hotel vs. Hasbro Inc | Dalata Hotel vs. Xponential Fitness | Dalata Hotel vs. Playtika Holding Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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