Correlation Between Xponential Fitness and Sorrento Therapeutics
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Sorrento Therapeutics 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 Sorrento Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Sorrento Therapeutics, you can compare the effects of market volatilities on Xponential Fitness and Sorrento Therapeutics 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 Sorrento Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Sorrento Therapeutics.
Diversification Opportunities for Xponential Fitness and Sorrento Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xponential and Sorrento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Sorrento Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sorrento Therapeutics 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 Sorrento Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sorrento Therapeutics has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Sorrento Therapeutics go up and down completely randomly.
Pair Corralation between Xponential Fitness and Sorrento Therapeutics
If you would invest 1,423 in Xponential Fitness on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Xponential Fitness or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Xponential Fitness vs. Sorrento Therapeutics
Performance |
| Timeline |
| Xponential Fitness |
| Sorrento Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xponential Fitness and Sorrento Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Sorrento Therapeutics
The main advantage of trading using opposite Xponential Fitness and Sorrento Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Sorrento Therapeutics 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 Sorrento Therapeutics will offset losses from the drop in Sorrento Therapeutics' long position.| Xponential Fitness vs. Nathans Famous | Xponential Fitness vs. Flanigans Enterprises | Xponential Fitness vs. Good Times Restaurants | Xponential Fitness vs. Auburn National Bancorporation |
| Sorrento Therapeutics vs. Xponential Fitness | Sorrento Therapeutics vs. Planet Fitness | Sorrento Therapeutics vs. Mattel Inc | Sorrento Therapeutics vs. JD Sports Fashion |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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