Correlation Between Xponential Fitness and Green Planet
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Green Planet 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 Green Planet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Green Planet Bio, you can compare the effects of market volatilities on Xponential Fitness and Green Planet 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 Green Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Green Planet.
Diversification Opportunities for Xponential Fitness and Green Planet
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xponential and Green is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Green Planet Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Planet Bio 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 Green Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Planet Bio has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Green Planet go up and down completely randomly.
Pair Corralation between Xponential Fitness and Green Planet
Given the investment horizon of 90 days Xponential Fitness is expected to generate 172.45 times less return on investment than Green Planet. But when comparing it to its historical volatility, Xponential Fitness is 17.3 times less risky than Green Planet. It trades about 0.01 of its potential returns per unit of risk. Green Planet Bio is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Green Planet Bio on September 14, 2024 and sell it today you would lose (187.00) from holding Green Planet Bio or give up 77.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Xponential Fitness vs. Green Planet Bio
Performance |
| Timeline |
| Xponential Fitness |
| Green Planet Bio |
Xponential Fitness and Green Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Green Planet
The main advantage of trading using opposite Xponential Fitness and Green Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Green Planet 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 Green Planet will offset losses from the drop in Green Planet's long position.The idea behind Xponential Fitness and Green Planet Bio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Green Planet vs. Microbot Medical | Green Planet vs. Nyxoah | Green Planet vs. Xponential Fitness | Green Planet vs. enVVeno Medical 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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