Correlation Between Xponential Fitness and Green Shift
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Green Shift 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 Shift 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 Shift Commodities, you can compare the effects of market volatilities on Xponential Fitness and Green Shift 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 Shift. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Green Shift.
Diversification Opportunities for Xponential Fitness and Green Shift
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and Green is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Green Shift Commodities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Shift Commodities 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 Shift. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Shift Commodities has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Green Shift go up and down completely randomly.
Pair Corralation between Xponential Fitness and Green Shift
Given the investment horizon of 90 days Xponential Fitness is expected to generate 0.51 times more return on investment than Green Shift. However, Xponential Fitness is 1.96 times less risky than Green Shift. It trades about 0.09 of its potential returns per unit of risk. Green Shift Commodities is currently generating about 0.03 per unit of risk. If you would invest 985.00 in Xponential Fitness on September 3, 2024 and sell it today you would earn a total of 539.00 from holding Xponential Fitness or generate 54.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Xponential Fitness vs. Green Shift Commodities
Performance |
| Timeline |
| Xponential Fitness |
| Green Shift Commodities |
Xponential Fitness and Green Shift Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Green Shift
The main advantage of trading using opposite Xponential Fitness and Green Shift positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Green Shift 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 Shift will offset losses from the drop in Green Shift's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Mattel Inc | Xponential Fitness vs. OneSpaWorld Holdings |
| Green Shift vs. Asure Software | Green Shift vs. Mattel Inc | Green Shift vs. Addus HomeCare | Green Shift vs. Xponential Fitness |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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