Correlation Between Xponential Fitness and AMERICAN
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By analyzing existing cross correlation between Xponential Fitness and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Xponential Fitness and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and AMERICAN.
Diversification Opportunities for Xponential Fitness and AMERICAN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and AMERICAN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and AMERICAN go up and down completely randomly.
Pair Corralation between Xponential Fitness and AMERICAN
Given the investment horizon of 90 days Xponential Fitness is expected to generate 23.32 times more return on investment than AMERICAN. However, Xponential Fitness is 23.32 times more volatile than AMERICAN EXPRESS CR. It trades about 0.1 of its potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about -0.08 per unit of risk. If you would invest 1,205 in Xponential Fitness on September 13, 2024 and sell it today you would earn a total of 233.00 from holding Xponential Fitness or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Xponential Fitness vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Xponential Fitness |
| AMERICAN EXPRESS |
Xponential Fitness and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and AMERICAN
The main advantage of trading using opposite Xponential Fitness and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.The idea behind Xponential Fitness and AMERICAN EXPRESS CR 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.| AMERICAN vs. Hurco Companies | AMERICAN vs. RBC Bearings Incorporated | AMERICAN vs. Xponential Fitness | AMERICAN vs. RCS MediaGroup SpA |
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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