Correlation Between Xponential Fitness and 908 Devices
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and 908 Devices 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 908 Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and 908 Devices, you can compare the effects of market volatilities on Xponential Fitness and 908 Devices 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 908 Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and 908 Devices.
Diversification Opportunities for Xponential Fitness and 908 Devices
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and 908 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and 908 Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 908 Devices 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 908 Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 908 Devices has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and 908 Devices go up and down completely randomly.
Pair Corralation between Xponential Fitness and 908 Devices
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.06 times more return on investment than 908 Devices. However, Xponential Fitness is 1.06 times more volatile than 908 Devices. It trades about 0.01 of its potential returns per unit of risk. 908 Devices is currently generating about -0.03 per unit of risk. If you would invest 2,247 in Xponential Fitness on August 24, 2024 and sell it today you would lose (753.00) from holding Xponential Fitness or give up 33.51% 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. 908 Devices
Performance |
| Timeline |
| Xponential Fitness |
| 908 Devices |
Xponential Fitness and 908 Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and 908 Devices
The main advantage of trading using opposite Xponential Fitness and 908 Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, 908 Devices 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 908 Devices will offset losses from the drop in 908 Devices' long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| 908 Devices vs. Inari Medical | 908 Devices vs. CONMED | 908 Devices vs. Glaukos Corp | 908 Devices vs. Nevro 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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