Correlation Between Xponential Fitness and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Perseus Mining 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 Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Perseus Mining Limited, you can compare the effects of market volatilities on Xponential Fitness and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Perseus Mining.
Diversification Opportunities for Xponential Fitness and Perseus Mining
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and Perseus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Perseus Mining go up and down completely randomly.
Pair Corralation between Xponential Fitness and Perseus Mining
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.23 times less return on investment than Perseus Mining. In addition to that, Xponential Fitness is 1.66 times more volatile than Perseus Mining Limited. It trades about 0.01 of its total potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.03 per unit of volatility. If you would invest 144.00 in Perseus Mining Limited on September 4, 2024 and sell it today you would earn a total of 24.00 from holding Perseus Mining Limited or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Xponential Fitness vs. Perseus Mining Limited
Performance |
| Timeline |
| Xponential Fitness |
| Perseus Mining |
Xponential Fitness and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Perseus Mining
The main advantage of trading using opposite Xponential Fitness and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| Perseus Mining vs. Aurion Resources | Perseus Mining vs. Liberty Gold Corp | Perseus Mining vs. Rio2 Limited | Perseus Mining vs. Orezone Gold Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |