Correlation Between Xponential Fitness and Mattel
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Mattel 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 Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Mattel Inc, you can compare the effects of market volatilities on Xponential Fitness and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Mattel.
Diversification Opportunities for Xponential Fitness and Mattel
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Mattel is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Mattel go up and down completely randomly.
Pair Corralation between Xponential Fitness and Mattel
Given the investment horizon of 90 days Xponential Fitness is expected to generate 3.27 times more return on investment than Mattel. However, Xponential Fitness is 3.27 times more volatile than Mattel Inc. It trades about 0.18 of its potential returns per unit of risk. Mattel Inc is currently generating about -0.06 per unit of risk. If you would invest 1,249 in Xponential Fitness on August 27, 2024 and sell it today you would earn a total of 321.00 from holding Xponential Fitness or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Mattel Inc
Performance |
| Timeline |
| Xponential Fitness |
| Mattel Inc |
Xponential Fitness and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Mattel
The main advantage of trading using opposite Xponential Fitness and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Mattel vs. Funko Inc | Mattel vs. JAKKS Pacific | Mattel vs. Madison Square Garden | Mattel vs. Life Time Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |