Correlation Between Xponential Fitness and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Maanshan Iron 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 Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Maanshan Iron Steel, you can compare the effects of market volatilities on Xponential Fitness and Maanshan Iron 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 Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Maanshan Iron.
Diversification Opportunities for Xponential Fitness and Maanshan Iron
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xponential and Maanshan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel 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 Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Maanshan Iron go up and down completely randomly.
Pair Corralation between Xponential Fitness and Maanshan Iron
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.0 times more return on investment than Maanshan Iron. However, Xponential Fitness is 1.0 times more volatile than Maanshan Iron Steel. It trades about 0.06 of its potential returns per unit of risk. Maanshan Iron Steel is currently generating about 0.01 per unit of risk. If you would invest 1,217 in Xponential Fitness on September 3, 2024 and sell it today you would earn a total of 307.00 from holding Xponential Fitness or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Maanshan Iron Steel
Performance |
| Timeline |
| Xponential Fitness |
| Maanshan Iron Steel |
Xponential Fitness and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Maanshan Iron
The main advantage of trading using opposite Xponential Fitness and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Mattel Inc | Xponential Fitness vs. OneSpaWorld Holdings |
| Maanshan Iron vs. Ta Chen Stainless | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Gerdau SA | Maanshan Iron vs. Nucor Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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