Correlation Between Xponential Fitness and Hillman Solutions
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Hillman Solutions 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 Hillman Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Hillman Solutions Corp, you can compare the effects of market volatilities on Xponential Fitness and Hillman Solutions 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 Hillman Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Hillman Solutions.
Diversification Opportunities for Xponential Fitness and Hillman Solutions
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and Hillman is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Hillman Solutions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillman Solutions Corp 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 Hillman Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillman Solutions Corp has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Hillman Solutions go up and down completely randomly.
Pair Corralation between Xponential Fitness and Hillman Solutions
Given the investment horizon of 90 days Xponential Fitness is expected to generate 4.4 times more return on investment than Hillman Solutions. However, Xponential Fitness is 4.4 times more volatile than Hillman Solutions Corp. It trades about 0.18 of its potential returns per unit of risk. Hillman Solutions Corp is currently generating about 0.22 per unit of risk. If you would invest 1,225 in Xponential Fitness on September 1, 2024 and sell it today you would earn a total of 299.00 from holding Xponential Fitness or generate 24.41% 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. Hillman Solutions Corp
Performance |
| Timeline |
| Xponential Fitness |
| Hillman Solutions Corp |
Xponential Fitness and Hillman Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Hillman Solutions
The main advantage of trading using opposite Xponential Fitness and Hillman Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Hillman Solutions 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 Hillman Solutions will offset losses from the drop in Hillman Solutions' long position.| Xponential Fitness vs. The Wendys Co | Xponential Fitness vs. Shake Shack | Xponential Fitness vs. Papa Johns International | Xponential Fitness vs. Darden Restaurants |
| Hillman Solutions vs. Kennametal | Hillman Solutions vs. AB SKF | Hillman Solutions vs. Eastern Co | Hillman Solutions vs. Timken Company |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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