Correlation Between Xponential Fitness and Getty Realty
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Getty Realty 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 Getty Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Getty Realty, you can compare the effects of market volatilities on Xponential Fitness and Getty Realty 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 Getty Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Getty Realty.
Diversification Opportunities for Xponential Fitness and Getty Realty
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and Getty is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Getty Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Realty 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 Getty Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Realty has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Getty Realty go up and down completely randomly.
Pair Corralation between Xponential Fitness and Getty Realty
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the Getty Realty. In addition to that, Xponential Fitness is 4.56 times more volatile than Getty Realty. It trades about 0.0 of its total potential returns per unit of risk. Getty Realty is currently generating about 0.02 per unit of volatility. If you would invest 3,094 in Getty Realty on August 31, 2024 and sell it today you would earn a total of 237.00 from holding Getty Realty or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Getty Realty
Performance |
| Timeline |
| Xponential Fitness |
| Getty Realty |
Xponential Fitness and Getty Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Getty Realty
The main advantage of trading using opposite Xponential Fitness and Getty Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Getty Realty 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 Getty Realty will offset losses from the drop in Getty Realty's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Getty Realty vs. Regency Centers | Getty Realty vs. Site Centers Corp | Getty Realty vs. Brixmor Property | Getty Realty vs. Tanger Factory Outlet |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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