Correlation Between Xponential Fitness and Sabre Corpo
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Sabre Corpo 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 Sabre Corpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Sabre Corpo, you can compare the effects of market volatilities on Xponential Fitness and Sabre Corpo 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 Sabre Corpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Sabre Corpo.
Diversification Opportunities for Xponential Fitness and Sabre Corpo
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and Sabre is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo 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 Sabre Corpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Corpo has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Sabre Corpo go up and down completely randomly.
Pair Corralation between Xponential Fitness and Sabre Corpo
Given the investment horizon of 90 days Xponential Fitness is expected to generate 0.58 times more return on investment than Sabre Corpo. However, Xponential Fitness is 1.72 times less risky than Sabre Corpo. It trades about -0.2 of its potential returns per unit of risk. Sabre Corpo is currently generating about -0.2 per unit of risk. If you would invest 919.00 in Xponential Fitness on January 14, 2025 and sell it today you would lose (184.00) from holding Xponential Fitness or give up 20.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Sabre Corpo
Performance |
| Timeline |
| Xponential Fitness |
| Sabre Corpo |
Xponential Fitness and Sabre Corpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Sabre Corpo
The main advantage of trading using opposite Xponential Fitness and Sabre Corpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Sabre Corpo 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 Sabre Corpo will offset losses from the drop in Sabre Corpo's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar 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 CEOs Directory module to screen CEOs from public companies around the world.
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