Correlation Between Xponential Fitness and Aeye
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Aeye 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 Aeye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Aeye Inc, you can compare the effects of market volatilities on Xponential Fitness and Aeye 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 Aeye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Aeye.
Diversification Opportunities for Xponential Fitness and Aeye
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Aeye is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Aeye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeye Inc 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 Aeye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeye Inc has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Aeye go up and down completely randomly.
Pair Corralation between Xponential Fitness and Aeye
Given the investment horizon of 90 days Xponential Fitness is expected to generate 0.55 times more return on investment than Aeye. However, Xponential Fitness is 1.82 times less risky than Aeye. It trades about 0.01 of its potential returns per unit of risk. Aeye Inc is currently generating about 0.0 per unit of risk. If you would invest 2,509 in Xponential Fitness on August 31, 2024 and sell it today you would lose (985.00) from holding Xponential Fitness or give up 39.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Aeye Inc
Performance |
| Timeline |
| Xponential Fitness |
| Aeye Inc |
Xponential Fitness and Aeye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Aeye
The main advantage of trading using opposite Xponential Fitness and Aeye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Aeye 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 Aeye will offset losses from the drop in Aeye's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Aeye vs. Innoviz Technologies | Aeye vs. Luminar Technologies | Aeye vs. Hesai Group American | Aeye vs. Mobileye Global Class |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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