Correlation Between Xponential Fitness and Marine Products
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Marine Products 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 Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Marine Products, you can compare the effects of market volatilities on Xponential Fitness and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Marine Products.
Diversification Opportunities for Xponential Fitness and Marine Products
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xponential and Marine is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Marine Products go up and down completely randomly.
Pair Corralation between Xponential Fitness and Marine Products
Given the investment horizon of 90 days Xponential Fitness is expected to generate 3.31 times more return on investment than Marine Products. However, Xponential Fitness is 3.31 times more volatile than Marine Products. It trades about 0.13 of its potential returns per unit of risk. Marine Products is currently generating about 0.1 per unit of risk. If you would invest 1,224 in Xponential Fitness on August 27, 2024 and sell it today you would earn a total of 346.00 from holding Xponential Fitness or generate 28.27% 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. Marine Products
Performance |
| Timeline |
| Xponential Fitness |
| Marine Products |
Xponential Fitness and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Marine Products
The main advantage of trading using opposite Xponential Fitness and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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