Correlation Between Xponential Fitness and Foremost Lithium
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Foremost Lithium 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 Foremost Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Foremost Lithium Resource, you can compare the effects of market volatilities on Xponential Fitness and Foremost Lithium 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 Foremost Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Foremost Lithium.
Diversification Opportunities for Xponential Fitness and Foremost Lithium
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Foremost is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Foremost Lithium Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foremost Lithium Resource 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 Foremost Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foremost Lithium Resource has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Foremost Lithium go up and down completely randomly.
Pair Corralation between Xponential Fitness and Foremost Lithium
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.4 times more return on investment than Foremost Lithium. However, Xponential Fitness is 1.4 times more volatile than Foremost Lithium Resource. It trades about 0.18 of its potential returns per unit of risk. Foremost Lithium Resource is currently generating about -0.43 per unit of risk. If you would invest 1,249 in Xponential Fitness on August 28, 2024 and sell it today you would earn a total of 321.00 from holding Xponential Fitness or generate 25.7% 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. Foremost Lithium Resource
Performance |
| Timeline |
| Xponential Fitness |
| Foremost Lithium Resource |
Xponential Fitness and Foremost Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Foremost Lithium
The main advantage of trading using opposite Xponential Fitness and Foremost Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Foremost Lithium 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 Foremost Lithium will offset losses from the drop in Foremost Lithium's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Foremost Lithium vs. MP Materials Corp | Foremost Lithium vs. NioCorp Developments Ltd | Foremost Lithium vs. Vale SA ADR | Foremost Lithium vs. Vizsla Resources 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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