Correlation Between Xponential Fitness and Skillful Craftsman
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Skillful Craftsman 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 Skillful Craftsman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Skillful Craftsman Education, you can compare the effects of market volatilities on Xponential Fitness and Skillful Craftsman 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 Skillful Craftsman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Skillful Craftsman.
Diversification Opportunities for Xponential Fitness and Skillful Craftsman
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xponential and Skillful is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Skillful Craftsman Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skillful Craftsman 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 Skillful Craftsman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skillful Craftsman has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Skillful Craftsman go up and down completely randomly.
Pair Corralation between Xponential Fitness and Skillful Craftsman
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.72 times more return on investment than Skillful Craftsman. However, Xponential Fitness is 1.72 times more volatile than Skillful Craftsman Education. It trades about 0.09 of its potential returns per unit of risk. Skillful Craftsman Education is currently generating about -0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Skillful Craftsman Education
Performance |
| Timeline |
| Xponential Fitness |
| Skillful Craftsman |
Xponential Fitness and Skillful Craftsman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Skillful Craftsman
The main advantage of trading using opposite Xponential Fitness and Skillful Craftsman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Skillful Craftsman 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 Skillful Craftsman will offset losses from the drop in Skillful Craftsman's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Mattel Inc | Xponential Fitness vs. OneSpaWorld Holdings |
| Skillful Craftsman vs. Wah Fu Education | Skillful Craftsman vs. Golden Sun Education | Skillful Craftsman vs. Elite Education Group | Skillful Craftsman vs. QuantaSing Group Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| 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 | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |