Correlation Between Xponential Fitness and Triton International
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Triton International 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 Triton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Triton International Limited, you can compare the effects of market volatilities on Xponential Fitness and Triton International 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 Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Triton International.
Diversification Opportunities for Xponential Fitness and Triton International
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xponential and Triton is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International 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 Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Triton International go up and down completely randomly.
Pair Corralation between Xponential Fitness and Triton International
Given the investment horizon of 90 days Xponential Fitness is expected to generate 6.32 times more return on investment than Triton International. However, Xponential Fitness is 6.32 times more volatile than Triton International Limited. It trades about 0.3 of its potential returns per unit of risk. Triton International Limited is currently generating about 0.12 per unit of risk. If you would invest 1,295 in Xponential Fitness on October 22, 2024 and sell it today you would earn a total of 272.00 from holding Xponential Fitness or generate 21.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Xponential Fitness vs. Triton International Limited
Performance |
| Timeline |
| Xponential Fitness |
| Triton International |
Xponential Fitness and Triton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Triton International
The main advantage of trading using opposite Xponential Fitness and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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