Correlation Between Xponential Fitness and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and ReWalk Robotics 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 ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and ReWalk Robotics, you can compare the effects of market volatilities on Xponential Fitness and ReWalk Robotics 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 ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and ReWalk Robotics.
Diversification Opportunities for Xponential Fitness and ReWalk Robotics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xponential and ReWalk is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics 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 ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and ReWalk Robotics go up and down completely randomly.
Pair Corralation between Xponential Fitness and ReWalk Robotics
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.16 times more return on investment than ReWalk Robotics. However, Xponential Fitness is 1.16 times more volatile than ReWalk Robotics. It trades about 0.07 of its potential returns per unit of risk. ReWalk Robotics is currently generating about -0.22 per unit of risk. If you would invest 1,281 in Xponential Fitness on September 20, 2024 and sell it today you would earn a total of 144.00 from holding Xponential Fitness or generate 11.24% 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. ReWalk Robotics
Performance |
| Timeline |
| Xponential Fitness |
| ReWalk Robotics |
Xponential Fitness and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and ReWalk Robotics
The main advantage of trading using opposite Xponential Fitness and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, ReWalk Robotics 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 ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| ReWalk Robotics vs. Xponential Fitness | ReWalk Robotics vs. National CineMedia | ReWalk Robotics vs. Reservoir Media | ReWalk Robotics vs. Celsius Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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