Correlation Between Xponential Fitness and Life Time
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Life Time 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 Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Life Time Group, you can compare the effects of market volatilities on Xponential Fitness and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Life Time.
Diversification Opportunities for Xponential Fitness and Life Time
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xponential and Life is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Life Time go up and down completely randomly.
Pair Corralation between Xponential Fitness and Life Time
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.31 times more return on investment than Life Time. However, Xponential Fitness is 2.31 times more volatile than Life Time Group. It trades about 0.09 of its potential returns per unit of risk. Life Time Group is currently generating about 0.06 per unit of risk. If you would invest 1,281 in Xponential Fitness on October 20, 2024 and sell it today you would earn a total of 286.00 from holding Xponential Fitness or generate 22.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Life Time Group
Performance |
| Timeline |
| Xponential Fitness |
| Life Time Group |
Xponential Fitness and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Life Time
The main advantage of trading using opposite Xponential Fitness and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness | Life Time vs. Mattel 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |