Correlation Between Xponential Fitness and Entergy Louisiana
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Entergy Louisiana 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 Entergy Louisiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Entergy Louisiana LLC, you can compare the effects of market volatilities on Xponential Fitness and Entergy Louisiana 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 Entergy Louisiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Entergy Louisiana.
Diversification Opportunities for Xponential Fitness and Entergy Louisiana
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and Entergy is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Entergy Louisiana LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entergy Louisiana LLC 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 Entergy Louisiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entergy Louisiana LLC has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Entergy Louisiana go up and down completely randomly.
Pair Corralation between Xponential Fitness and Entergy Louisiana
Given the investment horizon of 90 days Xponential Fitness is expected to generate 9.38 times more return on investment than Entergy Louisiana. However, Xponential Fitness is 9.38 times more volatile than Entergy Louisiana LLC. It trades about 0.16 of its potential returns per unit of risk. Entergy Louisiana LLC is currently generating about -0.01 per unit of risk. If you would invest 1,261 in Xponential Fitness on September 5, 2024 and sell it today you would earn a total of 288.00 from holding Xponential Fitness or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Entergy Louisiana LLC
Performance |
| Timeline |
| Xponential Fitness |
| Entergy Louisiana LLC |
Xponential Fitness and Entergy Louisiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Entergy Louisiana
The main advantage of trading using opposite Xponential Fitness and Entergy Louisiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Entergy Louisiana 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 Entergy Louisiana will offset losses from the drop in Entergy Louisiana's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Entergy Louisiana vs. Uber Technologies | Entergy Louisiana vs. JD Sports Fashion | Entergy Louisiana vs. Xponential Fitness | Entergy Louisiana vs. Minerals Technologies |
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 CEOs Directory module to screen CEOs from public companies around the world.
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