Correlation Between Xponential Fitness and Nextnav Acquisition
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Nextnav Acquisition 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 Nextnav Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Nextnav Acquisition Corp, you can compare the effects of market volatilities on Xponential Fitness and Nextnav Acquisition 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 Nextnav Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Nextnav Acquisition.
Diversification Opportunities for Xponential Fitness and Nextnav Acquisition
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xponential and Nextnav is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Nextnav Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextnav Acquisition Corp 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 Nextnav Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextnav Acquisition Corp has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Nextnav Acquisition go up and down completely randomly.
Pair Corralation between Xponential Fitness and Nextnav Acquisition
Given the investment horizon of 90 days Xponential Fitness is expected to generate 16.56 times less return on investment than Nextnav Acquisition. In addition to that, Xponential Fitness is 1.15 times more volatile than Nextnav Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. Nextnav Acquisition Corp is currently generating about 0.12 per unit of volatility. If you would invest 386.00 in Nextnav Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 1,328 from holding Nextnav Acquisition Corp or generate 344.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Nextnav Acquisition Corp
Performance |
| Timeline |
| Xponential Fitness |
| Nextnav Acquisition Corp |
Xponential Fitness and Nextnav Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Nextnav Acquisition
The main advantage of trading using opposite Xponential Fitness and Nextnav Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Nextnav Acquisition 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 Nextnav Acquisition will offset losses from the drop in Nextnav Acquisition's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Nextnav Acquisition vs. NetScout Systems | Nextnav Acquisition vs. Priority Technology Holdings | Nextnav Acquisition vs. OneSpan | Nextnav Acquisition vs. Consensus Cloud Solutions |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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