Correlation Between Xponential Fitness and ScanSource
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and ScanSource 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 ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and ScanSource, you can compare the effects of market volatilities on Xponential Fitness and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and ScanSource.
Diversification Opportunities for Xponential Fitness and ScanSource
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and ScanSource is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and ScanSource go up and down completely randomly.
Pair Corralation between Xponential Fitness and ScanSource
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.75 times more return on investment than ScanSource. However, Xponential Fitness is 2.75 times more volatile than ScanSource. It trades about 0.07 of its potential returns per unit of risk. ScanSource is currently generating about 0.08 per unit of risk. If you would invest 899.00 in Xponential Fitness on September 4, 2024 and sell it today you would earn a total of 651.00 from holding Xponential Fitness or generate 72.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. ScanSource
Performance |
| Timeline |
| Xponential Fitness |
| ScanSource |
Xponential Fitness and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and ScanSource
The main advantage of trading using opposite Xponential Fitness and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |