Correlation Between Xponential Fitness and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and SAIHEAT 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 SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and SAIHEAT Limited, you can compare the effects of market volatilities on Xponential Fitness and SAIHEAT 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 SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and SAIHEAT.
Diversification Opportunities for Xponential Fitness and SAIHEAT
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and SAIHEAT is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and SAIHEAT go up and down completely randomly.
Pair Corralation between Xponential Fitness and SAIHEAT
Given the investment horizon of 90 days Xponential Fitness is expected to generate 0.38 times more return on investment than SAIHEAT. However, Xponential Fitness is 2.63 times less risky than SAIHEAT. It trades about 0.15 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about -0.17 per unit of risk. If you would invest 1,259 in Xponential Fitness on August 30, 2024 and sell it today you would earn a total of 262.00 from holding Xponential Fitness or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Xponential Fitness vs. SAIHEAT Limited
Performance |
| Timeline |
| Xponential Fitness |
| SAIHEAT Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Xponential Fitness and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and SAIHEAT
The main advantage of trading using opposite Xponential Fitness and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT's long position.| Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
| SAIHEAT vs. Raymond James Financial | SAIHEAT vs. Virtu Financial | SAIHEAT vs. Lion Financial Group | SAIHEAT vs. The Charles Schwab |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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