Correlation Between Xponential Fitness and Microbot Medical
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Microbot Medical 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 Microbot Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Microbot Medical, you can compare the effects of market volatilities on Xponential Fitness and Microbot Medical 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 Microbot Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Microbot Medical.
Diversification Opportunities for Xponential Fitness and Microbot Medical
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xponential and Microbot is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Microbot Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microbot Medical 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 Microbot Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microbot Medical has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Microbot Medical go up and down completely randomly.
Pair Corralation between Xponential Fitness and Microbot Medical
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.04 times more return on investment than Microbot Medical. However, Xponential Fitness is 1.04 times more volatile than Microbot Medical. It trades about 0.0 of its potential returns per unit of risk. Microbot Medical is currently generating about -0.02 per unit of risk. If you would invest 2,641 in Xponential Fitness on September 1, 2024 and sell it today you would lose (1,117) from holding Xponential Fitness or give up 42.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Microbot Medical
Performance |
| Timeline |
| Xponential Fitness |
| Microbot Medical |
Xponential Fitness and Microbot Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Microbot Medical
The main advantage of trading using opposite Xponential Fitness and Microbot Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Microbot Medical 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 Microbot Medical will offset losses from the drop in Microbot Medical's long position.| Xponential Fitness vs. Yum Brands | Xponential Fitness vs. The Wendys Co | Xponential Fitness vs. Wingstop | Xponential Fitness vs. Shake Shack |
| Microbot Medical vs. Intuitive Surgical | Microbot Medical vs. Innerscope Advertising Agency | Microbot Medical vs. Predictive Oncology | Microbot Medical vs. STAAR Surgical |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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