Correlation Between Xponential Fitness and Xunlei
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Xunlei 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 Xunlei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Xunlei Ltd Adr, you can compare the effects of market volatilities on Xponential Fitness and Xunlei 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 Xunlei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Xunlei.
Diversification Opportunities for Xponential Fitness and Xunlei
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xponential and Xunlei is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Xunlei Ltd Adr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xunlei Ltd Adr 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 Xunlei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xunlei Ltd Adr has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Xunlei go up and down completely randomly.
Pair Corralation between Xponential Fitness and Xunlei
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.86 times more return on investment than Xunlei. However, Xponential Fitness is 1.86 times more volatile than Xunlei Ltd Adr. It trades about 0.16 of its potential returns per unit of risk. Xunlei Ltd Adr is currently generating about 0.06 per unit of risk. If you would invest 1,261 in Xponential Fitness on September 3, 2024 and sell it today you would earn a total of 263.00 from holding Xponential Fitness or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xponential Fitness vs. Xunlei Ltd Adr
Performance |
| Timeline |
| Xponential Fitness |
| Xunlei Ltd Adr |
Xponential Fitness and Xunlei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and Xunlei
The main advantage of trading using opposite Xponential Fitness and Xunlei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Xunlei 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 Xunlei will offset losses from the drop in Xunlei's long position.| Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Mattel Inc | Xponential Fitness vs. OneSpaWorld Holdings |
| Xunlei vs. Travelzoo | Xunlei vs. Emerald Expositions Events | Xunlei vs. Ziff Davis | Xunlei vs. Direct Digital Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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