Correlation Between Xponential Fitness and ZOOZ Power
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and ZOOZ Power 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 ZOOZ Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and ZOOZ Power Ltd, you can compare the effects of market volatilities on Xponential Fitness and ZOOZ Power 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 ZOOZ Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and ZOOZ Power.
Diversification Opportunities for Xponential Fitness and ZOOZ Power
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and ZOOZ is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and ZOOZ Power Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZOOZ Power 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 ZOOZ Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZOOZ Power has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and ZOOZ Power go up and down completely randomly.
Pair Corralation between Xponential Fitness and ZOOZ Power
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.04 times more return on investment than ZOOZ Power. However, Xponential Fitness is 1.04 times more volatile than ZOOZ Power Ltd. It trades about 0.01 of its potential returns per unit of risk. ZOOZ Power Ltd is currently generating about -0.01 per unit of risk. If you would invest 2,217 in Xponential Fitness on September 4, 2024 and sell it today you would lose (667.00) from holding Xponential Fitness or give up 30.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 33.74% |
| Values | Daily Returns |
Xponential Fitness vs. ZOOZ Power Ltd
Performance |
| Timeline |
| Xponential Fitness |
| ZOOZ Power |
Xponential Fitness and ZOOZ Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xponential Fitness and ZOOZ Power
The main advantage of trading using opposite Xponential Fitness and ZOOZ Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, ZOOZ Power 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 ZOOZ Power will offset losses from the drop in ZOOZ Power's long position.| Xponential Fitness vs. Hyatt Hotels | Xponential Fitness vs. Smart Share Global | Xponential Fitness vs. Sweetgreen | Xponential Fitness vs. Wyndham Hotels Resorts |
| ZOOZ Power vs. Anterix | ZOOZ Power vs. Grupo Televisa SAB | ZOOZ Power vs. Highway Holdings Limited | ZOOZ Power vs. Digi International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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