Correlation Between Xponential Fitness and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and VinFast Auto 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 VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and VinFast Auto Ltd, you can compare the effects of market volatilities on Xponential Fitness and VinFast Auto 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 VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and VinFast Auto.
Diversification Opportunities for Xponential Fitness and VinFast Auto
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and VinFast is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto 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 VinFast Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinFast Auto has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and VinFast Auto go up and down completely randomly.
Pair Corralation between Xponential Fitness and VinFast Auto
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.59 times more return on investment than VinFast Auto. However, Xponential Fitness is 2.59 times more volatile than VinFast Auto Ltd. It trades about 0.14 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.14 per unit of risk. If you would invest 1,290 in Xponential Fitness on August 31, 2024 and sell it today you would earn a total of 231.00 from holding Xponential Fitness or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. VinFast Auto Ltd
Performance |
| Timeline |
| Xponential Fitness |
| VinFast Auto |
Xponential Fitness and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and VinFast Auto
The main advantage of trading using opposite Xponential Fitness and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, VinFast Auto 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 VinFast Auto will offset losses from the drop in VinFast Auto's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
| VinFast Auto vs. Ralph Lauren Corp | VinFast Auto vs. Hf Foods Group | VinFast Auto vs. SNDL Inc | VinFast Auto vs. Village Super Market |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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