Correlation Between Xponential Fitness and Suburban Propane
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and Suburban Propane 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 Suburban Propane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and Suburban Propane Partners, you can compare the effects of market volatilities on Xponential Fitness and Suburban Propane 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 Suburban Propane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and Suburban Propane.
Diversification Opportunities for Xponential Fitness and Suburban Propane
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xponential and Suburban is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and Suburban Propane Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suburban Propane Partners 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 Suburban Propane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suburban Propane Partners has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and Suburban Propane go up and down completely randomly.
Pair Corralation between Xponential Fitness and Suburban Propane
Given the investment horizon of 90 days Xponential Fitness is expected to generate 2.82 times more return on investment than Suburban Propane. However, Xponential Fitness is 2.82 times more volatile than Suburban Propane Partners. It trades about 0.0 of its potential returns per unit of risk. Suburban Propane Partners is currently generating about -0.01 per unit of risk. If you would invest 1,550 in Xponential Fitness on September 25, 2024 and sell it today you would lose (167.00) from holding Xponential Fitness or give up 10.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xponential Fitness vs. Suburban Propane Partners
Performance |
Timeline |
Xponential Fitness |
Suburban Propane Partners |
Xponential Fitness and Suburban Propane Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xponential Fitness and Suburban Propane
The main advantage of trading using opposite Xponential Fitness and Suburban Propane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, Suburban Propane 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 Suburban Propane will offset losses from the drop in Suburban Propane's long position.Xponential Fitness vs. Planet Fitness | Xponential Fitness vs. JAKKS Pacific | Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. OneSpaWorld Holdings |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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