Correlation Between Xponential Fitness and Volcan
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By analyzing existing cross correlation between Xponential Fitness and Volcan Compania Minera, you can compare the effects of market volatilities on Xponential Fitness and Volcan 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 Volcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Volcan.
Diversification Opportunities for Xponential Fitness and Volcan
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xponential and Volcan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Volcan Compania Minera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcan Compania Minera 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 Volcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcan Compania Minera has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Volcan go up and down completely randomly.
Pair Corralation between Xponential Fitness and Volcan
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.31 times more return on investment than Volcan. However, Xponential Fitness is 2.31 times more volatile than Volcan Compania Minera. It trades about 0.04 of its potential returns per unit of risk. Volcan Compania Minera is currently generating about 0.08 per unit of risk. If you would invest 1,193 in Xponential Fitness on September 14, 2024 and sell it today you would earn a total of 264.00 from holding Xponential Fitness or generate 22.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.11% |
| Values | Daily Returns |
Xponential Fitness vs. Volcan Compania Minera
Performance |
| Timeline |
| Xponential Fitness |
| Volcan Compania Minera |
Xponential Fitness and Volcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Volcan
The main advantage of trading using opposite Xponential Fitness and Volcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Volcan 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 Volcan will offset losses from the drop in Volcan's long position.The idea behind Xponential Fitness and Volcan Compania Minera 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.| Volcan vs. Elmos Semiconductor SE | Volcan vs. Weibo Corp | Volcan vs. Teradyne | Volcan vs. Amkor Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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