Correlation Between Xponential Fitness and Six Flags
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Six Flags 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 Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Six Flags Entertainment, you can compare the effects of market volatilities on Xponential Fitness and Six Flags 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 Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Six Flags.
Diversification Opportunities for Xponential Fitness and Six Flags
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and Six is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment 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 Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Six Flags go up and down completely randomly.
Pair Corralation between Xponential Fitness and Six Flags
If you would invest 1,249 in Xponential Fitness on August 27, 2024 and sell it today you would earn a total of 321.00 from holding Xponential Fitness or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Xponential Fitness vs. Six Flags Entertainment
Performance |
| Timeline |
| Xponential Fitness |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xponential Fitness and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Six Flags
The main advantage of trading using opposite Xponential Fitness and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Six Flags Entertainment |
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.
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