Correlation Between Xponential Fitness and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Oatly Group 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 Oatly Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Oatly Group AB, you can compare the effects of market volatilities on Xponential Fitness and Oatly Group 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 Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Oatly Group.
Diversification Opportunities for Xponential Fitness and Oatly Group
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and Oatly is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB 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 Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Oatly Group go up and down completely randomly.
Pair Corralation between Xponential Fitness and Oatly Group
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.16 times more return on investment than Oatly Group. However, Xponential Fitness is 1.16 times more volatile than Oatly Group AB. It trades about 0.14 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.05 per unit of risk. If you would invest 1,290 in Xponential Fitness on August 31, 2024 and sell it today you would earn a total of 231.00 from holding Xponential Fitness or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Oatly Group AB
Performance |
| Timeline |
| Xponential Fitness |
| Oatly Group AB |
Xponential Fitness and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Oatly Group
The main advantage of trading using opposite Xponential Fitness and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Oatly Group 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 Oatly Group will offset losses from the drop in Oatly Group's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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