Correlation Between Xponential Fitness and ENERGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xponential Fitness and ENERGY TRANSFER OPER, you can compare the effects of market volatilities on Xponential Fitness and ENERGY 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 ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and ENERGY.
Diversification Opportunities for Xponential Fitness and ENERGY
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xponential and ENERGY is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and ENERGY TRANSFER OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGY TRANSFER OPER 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 ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGY TRANSFER OPER has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and ENERGY go up and down completely randomly.
Pair Corralation between Xponential Fitness and ENERGY
Given the investment horizon of 90 days Xponential Fitness is expected to generate 7.46 times more return on investment than ENERGY. However, Xponential Fitness is 7.46 times more volatile than ENERGY TRANSFER OPER. It trades about 0.04 of its potential returns per unit of risk. ENERGY TRANSFER OPER is currently generating about 0.01 per unit of risk. If you would invest 1,219 in Xponential Fitness on September 2, 2024 and sell it today you would earn a total of 305.00 from holding Xponential Fitness or generate 25.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Xponential Fitness vs. ENERGY TRANSFER OPER
Performance |
| Timeline |
| Xponential Fitness |
| ENERGY TRANSFER OPER |
Xponential Fitness and ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and ENERGY
The main advantage of trading using opposite Xponential Fitness and ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, ENERGY 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 ENERGY will offset losses from the drop in ENERGY's long position.The idea behind Xponential Fitness and ENERGY TRANSFER OPER 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.| ENERGY vs. Funko Inc | ENERGY vs. Compania Cervecerias Unidas | ENERGY vs. Emerson Radio | ENERGY vs. Xponential Fitness |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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