Correlation Between Xponential Fitness and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Teleflex Incorporated 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 Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Teleflex Incorporated, you can compare the effects of market volatilities on Xponential Fitness and Teleflex Incorporated 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 Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Teleflex Incorporated.
Diversification Opportunities for Xponential Fitness and Teleflex Incorporated
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xponential and Teleflex is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated 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 Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Xponential Fitness and Teleflex Incorporated
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.02 times more return on investment than Teleflex Incorporated. However, Xponential Fitness is 2.02 times more volatile than Teleflex Incorporated. It trades about 0.09 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.25 per unit of risk. If you would invest 1,313 in Xponential Fitness on August 24, 2024 and sell it today you would earn a total of 124.00 from holding Xponential Fitness or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Teleflex Incorporated
Performance |
| Timeline |
| Xponential Fitness |
| Teleflex Incorporated |
Xponential Fitness and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Teleflex Incorporated
The main advantage of trading using opposite Xponential Fitness and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world |