Correlation Between 126307AY3 and Xponential Fitness

Can any of the company-specific risk be diversified away by investing in both 126307AY3 and Xponential Fitness 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 126307AY3 and Xponential Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSC Holdings 75 and Xponential Fitness, you can compare the effects of market volatilities on 126307AY3 and Xponential Fitness 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 126307AY3 with a short position of Xponential Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of 126307AY3 and Xponential Fitness.

Diversification Opportunities for 126307AY3 and Xponential Fitness

-0.12

Correlation Coefficient

126307AY3  Xponential Fitness

Good diversification

The 3 months correlation between 126307AY3 and Xponential is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CSC Holdings 75 and Xponential Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xponential Fitness and 126307AY3 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 CSC Holdings 75 are associated (or correlated) with Xponential Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xponential Fitness has no effect on the direction of 126307AY3 i.e., 126307AY3 and Xponential Fitness go up and down completely randomly.

Pair Corralation between 126307AY3 and Xponential Fitness

Assuming the 90 days trading horizon CSC Holdings 75 is expected to generate 8.98 times more return on investment than Xponential Fitness. However, 126307AY3 is 8.98 times more volatile than Xponential Fitness. It trades about 0.04 of its potential returns per unit of risk. Xponential Fitness is currently generating about 0.01 per unit of risk. If you would invest  6,575  in CSC Holdings 75 on September 16, 2024 and sell it today you would lose (180.00) from holding CSC Holdings 75 or give up 2.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.15%
Values	Daily Returns

CSC Holdings 75  vs.  Xponential Fitness

CSC Holdings 75

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CSC Holdings 75 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, 126307AY3 may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Xponential Fitness

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Xponential Fitness are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Xponential Fitness reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 126307AY3 and Xponential Fitness

The main advantage of trading using opposite 126307AY3 and Xponential Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 126307AY3 position performs unexpectedly, Xponential Fitness 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 Xponential Fitness will offset losses from the drop in Xponential Fitness' long position.

The idea behind CSC Holdings 75 and Xponential Fitness 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.