Correlation Between Xponential Fitness and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Lindblad Expeditions 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 Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Xponential Fitness and Lindblad Expeditions 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 Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Lindblad Expeditions.
Diversification Opportunities for Xponential Fitness and Lindblad Expeditions
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xponential and Lindblad is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions 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 Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Xponential Fitness and Lindblad Expeditions
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.72 times less return on investment than Lindblad Expeditions. In addition to that, Xponential Fitness is 1.11 times more volatile than Lindblad Expeditions Holdings. It trades about 0.17 of its total potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.32 per unit of volatility. If you would invest 935.00 in Lindblad Expeditions Holdings on September 4, 2024 and sell it today you would earn a total of 449.00 from holding Lindblad Expeditions Holdings or generate 48.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Xponential Fitness |
| Lindblad Expeditions |
Xponential Fitness and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Lindblad Expeditions
The main advantage of trading using opposite Xponential Fitness and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. TripAdvisor | Lindblad Expeditions vs. Thayer Ventures Acquisition |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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