Correlation Between Xponential Fitness and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and PennantPark Floating 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 PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and PennantPark Floating Rate, you can compare the effects of market volatilities on Xponential Fitness and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and PennantPark Floating.
Diversification Opportunities for Xponential Fitness and PennantPark Floating
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and PennantPark is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and PennantPark Floating go up and down completely randomly.
Pair Corralation between Xponential Fitness and PennantPark Floating
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.78 times less return on investment than PennantPark Floating. In addition to that, Xponential Fitness is 6.02 times more volatile than PennantPark Floating Rate. It trades about 0.01 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.07 per unit of volatility. If you would invest 914.00 in PennantPark Floating Rate on September 12, 2024 and sell it today you would earn a total of 188.50 from holding PennantPark Floating Rate or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. PennantPark Floating Rate
Performance |
| Timeline |
| Xponential Fitness |
| PennantPark Floating Rate |
Xponential Fitness and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and PennantPark Floating
The main advantage of trading using opposite Xponential Fitness and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital | PennantPark Floating vs. Gladstone Capital | PennantPark Floating vs. Main Street Capital |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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