Correlation Between Xponential Fitness and ATT
Can any of the company-specific risk be diversified away by investing in both Xponential Fitness and ATT 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 ATT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xponential Fitness and ATT Inc, you can compare the effects of market volatilities on Xponential Fitness and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xponential Fitness and ATT.
Diversification Opportunities for Xponential Fitness and ATT
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xponential and ATT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Xponential Fitness and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Xponential Fitness i.e., Xponential Fitness and ATT go up and down completely randomly.
Pair Corralation between Xponential Fitness and ATT
Given the investment horizon of 90 days Xponential Fitness is expected to under-perform the ATT. In addition to that, Xponential Fitness is 4.05 times more volatile than ATT Inc. It trades about -0.07 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.01 per unit of volatility. If you would invest 1,705 in ATT Inc on February 8, 2024 and sell it today you would earn a total of 3.00 from holding ATT Inc or generate 0.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xponential Fitness vs. ATT Inc
Performance |
Timeline |
Xponential Fitness |
ATT Inc |
Xponential Fitness and ATT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xponential Fitness and ATT
The main advantage of trading using opposite Xponential Fitness and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xponential Fitness position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.Xponential Fitness vs. Acushnet Holdings Corp | Xponential Fitness vs. YETI Holdings | Xponential Fitness vs. Madison Square Garden | Xponential Fitness vs. JAKKS Pacific |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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