Correlation Between Xponential Fitness and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and RCS MediaGroup 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 RCS MediaGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and RCS MediaGroup SpA, you can compare the effects of market volatilities on Xponential Fitness and RCS MediaGroup 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 RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and RCS MediaGroup.
Diversification Opportunities for Xponential Fitness and RCS MediaGroup
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xponential and RCS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA 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 RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Xponential Fitness and RCS MediaGroup
Given the investment horizon of 90 days Xponential Fitness is expected to generate 12.08 times more return on investment than RCS MediaGroup. However, Xponential Fitness is 12.08 times more volatile than RCS MediaGroup SpA. It trades about 0.14 of its potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.36 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Xponential Fitness |
| RCS MediaGroup SpA |
Xponential Fitness and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and RCS MediaGroup
The main advantage of trading using opposite Xponential Fitness and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| RCS MediaGroup vs. Slate Office REIT | RCS MediaGroup vs. HUMANA INC | RCS MediaGroup vs. Aquagold International | RCS MediaGroup vs. Barloworld Ltd ADR |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |