Correlation Between Xponential Fitness and Falcons Beyond
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Falcons Beyond 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 Falcons Beyond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Falcons Beyond Global,, you can compare the effects of market volatilities on Xponential Fitness and Falcons Beyond 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 Falcons Beyond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Falcons Beyond.
Diversification Opportunities for Xponential Fitness and Falcons Beyond
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Falcons is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Falcons Beyond Global, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcons Beyond Global, 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 Falcons Beyond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcons Beyond Global, has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Falcons Beyond go up and down completely randomly.
Pair Corralation between Xponential Fitness and Falcons Beyond
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the Falcons Beyond. But the stock apears to be less risky and, when comparing its historical volatility, Xponential Fitness is 2.74 times less risky than Falcons Beyond. The stock trades about -0.14 of its potential returns per unit of risk. The Falcons Beyond Global, is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Falcons Beyond Global, on November 28, 2024 and sell it today you would earn a total of 318.00 from holding Falcons Beyond Global, or generate 78.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xponential Fitness vs. Falcons Beyond Global,
Performance |
| Timeline |
| Xponential Fitness |
| Falcons Beyond Global, |
Xponential Fitness and Falcons Beyond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Falcons Beyond
The main advantage of trading using opposite Xponential Fitness and Falcons Beyond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Falcons Beyond 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 Falcons Beyond will offset losses from the drop in Falcons Beyond's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| Falcons Beyond vs. Skechers USA | Falcons Beyond vs. Figs Inc | Falcons Beyond vs. CenterPoint Energy | Falcons Beyond vs. American Electric Power |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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