Correlation Between Xponential Fitness and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Eldorado Gold 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 Eldorado Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Eldorado Gold Corp, you can compare the effects of market volatilities on Xponential Fitness and Eldorado Gold 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 Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Eldorado Gold.
Diversification Opportunities for Xponential Fitness and Eldorado Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Eldorado is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp 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 Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Eldorado Gold go up and down completely randomly.
Pair Corralation between Xponential Fitness and Eldorado Gold
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.78 times less return on investment than Eldorado Gold. In addition to that, Xponential Fitness is 2.34 times more volatile than Eldorado Gold Corp. It trades about 0.03 of its total potential returns per unit of risk. Eldorado Gold Corp is currently generating about 0.11 per unit of volatility. If you would invest 843.00 in Eldorado Gold Corp on August 25, 2024 and sell it today you would earn a total of 813.00 from holding Eldorado Gold Corp or generate 96.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Eldorado Gold Corp
Performance |
| Timeline |
| Xponential Fitness |
| Eldorado Gold Corp |
Xponential Fitness and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Eldorado Gold
The main advantage of trading using opposite Xponential Fitness and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Eldorado Gold vs. IAMGold | Eldorado Gold vs. Kinross Gold | Eldorado Gold vs. Agnico Eagle Mines | Eldorado Gold vs. Gold Fields Ltd |
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.
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