Correlation Between Xponential Fitness and Sun Life
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Sun Life 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 Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Sun Life Financial, you can compare the effects of market volatilities on Xponential Fitness and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Sun Life.
Diversification Opportunities for Xponential Fitness and Sun Life
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xponential and Sun is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Sun Life go up and down completely randomly.
Pair Corralation between Xponential Fitness and Sun Life
Given the investment horizon of 90 days Xponential Fitness is expected to generate 5.89 times more return on investment than Sun Life. However, Xponential Fitness is 5.89 times more volatile than Sun Life Financial. It trades about 0.03 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.09 per unit of risk. If you would invest 1,373 in Xponential Fitness on August 24, 2024 and sell it today you would earn a total of 108.00 from holding Xponential Fitness or generate 7.87% 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. Sun Life Financial
Performance |
| Timeline |
| Xponential Fitness |
| Sun Life Financial |
Xponential Fitness and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Sun Life
The main advantage of trading using opposite Xponential Fitness and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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