Correlation Between Xponential Fitness and Eastman Kodak
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Eastman Kodak 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 Eastman Kodak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Eastman Kodak Co, you can compare the effects of market volatilities on Xponential Fitness and Eastman Kodak 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 Eastman Kodak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Eastman Kodak.
Diversification Opportunities for Xponential Fitness and Eastman Kodak
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and Eastman is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Eastman Kodak Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastman Kodak 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 Eastman Kodak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastman Kodak has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Eastman Kodak go up and down completely randomly.
Pair Corralation between Xponential Fitness and Eastman Kodak
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.94 times less return on investment than Eastman Kodak. But when comparing it to its historical volatility, Xponential Fitness is 1.03 times less risky than Eastman Kodak. It trades about 0.17 of its potential returns per unit of risk. Eastman Kodak Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Eastman Kodak Co on September 4, 2024 and sell it today you would earn a total of 252.00 from holding Eastman Kodak Co or generate 53.62% 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. Eastman Kodak Co
Performance |
| Timeline |
| Xponential Fitness |
| Eastman Kodak |
Xponential Fitness and Eastman Kodak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Eastman Kodak
The main advantage of trading using opposite Xponential Fitness and Eastman Kodak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Eastman Kodak 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 Eastman Kodak will offset losses from the drop in Eastman Kodak's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| Eastman Kodak vs. SMX Public Limited | Eastman Kodak vs. System1 | Eastman Kodak vs. Lichen China Limited | Eastman Kodak vs. Team Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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