Correlation Between Xponential Fitness and Intelligent Bio
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Intelligent Bio 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 Intelligent Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Intelligent Bio Solutions, you can compare the effects of market volatilities on Xponential Fitness and Intelligent Bio 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 Intelligent Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Intelligent Bio.
Diversification Opportunities for Xponential Fitness and Intelligent Bio
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and Intelligent is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Intelligent Bio go up and down completely randomly.
Pair Corralation between Xponential Fitness and Intelligent Bio
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the Intelligent Bio. But the stock apears to be less risky and, when comparing its historical volatility, Xponential Fitness is 2.51 times less risky than Intelligent Bio. The stock trades about -0.25 of its potential returns per unit of risk. The Intelligent Bio Solutions is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Intelligent Bio Solutions on November 29, 2024 and sell it today you would earn a total of 59.00 from holding Intelligent Bio Solutions or generate 40.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xponential Fitness vs. Intelligent Bio Solutions
Performance |
| Timeline |
| Xponential Fitness |
| Intelligent Bio Solutions |
Xponential Fitness and Intelligent Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Intelligent Bio
The main advantage of trading using opposite Xponential Fitness and Intelligent Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Intelligent Bio 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 Intelligent Bio will offset losses from the drop in Intelligent Bio's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| Intelligent Bio vs. MOGU Inc | Intelligent Bio vs. United Guardian | Intelligent Bio vs. Aterian | Intelligent Bio vs. Best Buy Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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