Correlation Between Xponential Fitness and Hasbro
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Hasbro 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 Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Hasbro Inc, you can compare the effects of market volatilities on Xponential Fitness and Hasbro 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 Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Hasbro.
Diversification Opportunities for Xponential Fitness and Hasbro
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and Hasbro is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc 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 Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Hasbro go up and down completely randomly.
Pair Corralation between Xponential Fitness and Hasbro
Given the investment horizon of 90 days Xponential Fitness is expected to generate 4.84 times more return on investment than Hasbro. However, Xponential Fitness is 4.84 times more volatile than Hasbro Inc. It trades about 0.15 of its potential returns per unit of risk. Hasbro Inc is currently generating about -0.13 per unit of risk. If you would invest 1,230 in Xponential Fitness on August 25, 2024 and sell it today you would earn a total of 264.00 from holding Xponential Fitness or generate 21.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Hasbro Inc
Performance |
| Timeline |
| Xponential Fitness |
| Hasbro Inc |
Xponential Fitness and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Hasbro
The main advantage of trading using opposite Xponential Fitness and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Hasbro vs. MCBC Holdings | Hasbro vs. Marine Products | Hasbro vs. Winnebago Industries | Hasbro vs. LCI Industries |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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