Correlation Between Xponential Fitness and LithiumBank Resources
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and LithiumBank Resources 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 LithiumBank Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and LithiumBank Resources Corp, you can compare the effects of market volatilities on Xponential Fitness and LithiumBank Resources 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 LithiumBank Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and LithiumBank Resources.
Diversification Opportunities for Xponential Fitness and LithiumBank Resources
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and LithiumBank is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and LithiumBank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LithiumBank Resources 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 LithiumBank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LithiumBank Resources has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and LithiumBank Resources go up and down completely randomly.
Pair Corralation between Xponential Fitness and LithiumBank Resources
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.15 times more return on investment than LithiumBank Resources. However, Xponential Fitness is 1.15 times more volatile than LithiumBank Resources Corp. It trades about 0.01 of its potential returns per unit of risk. LithiumBank Resources Corp is currently generating about -0.03 per unit of risk. If you would invest 2,217 in Xponential Fitness on September 4, 2024 and sell it today you would lose (667.00) from holding Xponential Fitness or give up 30.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Xponential Fitness vs. LithiumBank Resources Corp
Performance |
| Timeline |
| Xponential Fitness |
| LithiumBank Resources |
Xponential Fitness and LithiumBank Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and LithiumBank Resources
The main advantage of trading using opposite Xponential Fitness and LithiumBank Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, LithiumBank Resources 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 LithiumBank Resources will offset losses from the drop in LithiumBank Resources' long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| LithiumBank Resources vs. Qubec Nickel Corp | LithiumBank Resources vs. IGO Limited | LithiumBank Resources vs. Avarone Metals | LithiumBank Resources vs. Adriatic Metals PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |