Correlation Between Xponential Fitness and LOWES
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By analyzing existing cross correlation between Xponential Fitness and LOWES PANIES INC, you can compare the effects of market volatilities on Xponential Fitness and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and LOWES.
Diversification Opportunities for Xponential Fitness and LOWES
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xponential and LOWES is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and LOWES go up and down completely randomly.
Pair Corralation between Xponential Fitness and LOWES
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the LOWES. In addition to that, Xponential Fitness is 1.23 times more volatile than LOWES PANIES INC. It trades about -0.13 of its total potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.03 per unit of volatility. If you would invest 8,727 in LOWES PANIES INC on September 13, 2024 and sell it today you would lose (188.00) from holding LOWES PANIES INC or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xponential Fitness vs. LOWES PANIES INC
Performance |
| Timeline |
| Xponential Fitness |
| LOWES PANIES INC |
Xponential Fitness and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and LOWES
The main advantage of trading using opposite Xponential Fitness and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.The idea behind Xponential Fitness and LOWES PANIES INC 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.| LOWES vs. National CineMedia | LOWES vs. Hf Foods Group | LOWES vs. Senmiao Technology | LOWES vs. NH Foods Ltd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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