Correlation Between Xponential Fitness and Urban Barns

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Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Urban Barns 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 Urban Barns into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Urban Barns Foods, you can compare the effects of market volatilities on Xponential Fitness and Urban Barns 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 Urban Barns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Urban Barns.

Diversification Opportunities for Xponential Fitness and Urban Barns

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Xponential and Urban is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Urban Barns Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Barns Foods 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 Urban Barns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Barns Foods has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Urban Barns go up and down completely randomly.

Pair Corralation between Xponential Fitness and Urban Barns

If you would invest  1,261  in Xponential Fitness on September 3, 2024 and sell it today you would earn a total of  263.00  from holding Xponential Fitness or generate 20.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Xponential Fitness  vs.  Urban Barns Foods

 Performance 
       Timeline  
Xponential Fitness 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Xponential Fitness are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Xponential Fitness reported solid returns over the last few months and may actually be approaching a breakup point.
Urban Barns Foods 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Urban Barns Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Urban Barns is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Xponential Fitness and Urban Barns Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xponential Fitness and Urban Barns

The main advantage of trading using opposite Xponential Fitness and Urban Barns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Urban Barns 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 Urban Barns will offset losses from the drop in Urban Barns' long position.
The idea behind Xponential Fitness and Urban Barns Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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