Correlation Between Xponential Fitness and Hafnia
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Hafnia 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 Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Hafnia Limited, you can compare the effects of market volatilities on Xponential Fitness and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Hafnia.
Diversification Opportunities for Xponential Fitness and Hafnia
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and Hafnia is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Hafnia go up and down completely randomly.
Pair Corralation between Xponential Fitness and Hafnia
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.79 times less return on investment than Hafnia. In addition to that, Xponential Fitness is 1.84 times more volatile than Hafnia Limited. It trades about 0.01 of its total potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 per unit of volatility. If you would invest 411.00 in Hafnia Limited on September 4, 2024 and sell it today you would earn a total of 152.00 from holding Hafnia Limited or generate 36.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.2% |
| Values | Daily Returns |
Xponential Fitness vs. Hafnia Limited
Performance |
| Timeline |
| Xponential Fitness |
| Hafnia Limited |
Xponential Fitness and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Hafnia
The main advantage of trading using opposite Xponential Fitness and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| Hafnia vs. Axalta Coating Systems | Hafnia vs. NL Industries | Hafnia vs. Chemours Co | Hafnia vs. CVR Partners LP |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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