Correlation Between Xponential Fitness and Griffon
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Griffon 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 Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Griffon, you can compare the effects of market volatilities on Xponential Fitness and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Griffon.
Diversification Opportunities for Xponential Fitness and Griffon
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xponential and Griffon is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Griffon go up and down completely randomly.
Pair Corralation between Xponential Fitness and Griffon
Given the investment horizon of 90 days Xponential Fitness is expected to generate 1.62 times more return on investment than Griffon. However, Xponential Fitness is 1.62 times more volatile than Griffon. It trades about 0.05 of its potential returns per unit of risk. Griffon is currently generating about 0.04 per unit of risk. If you would invest 1,259 in Xponential Fitness on September 24, 2024 and sell it today you would earn a total of 124.00 from holding Xponential Fitness or generate 9.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xponential Fitness vs. Griffon
Performance |
Timeline |
Xponential Fitness |
Griffon |
Xponential Fitness and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xponential Fitness and Griffon
The main advantage of trading using opposite Xponential Fitness and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. Bowlero Corp | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp |
Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings | Griffon vs. Steel Partners 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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