Correlation Between BigBearai Holdings and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both BigBearai Holdings and ExlService Holdings 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 BigBearai Holdings and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BigBearai Holdings and ExlService Holdings, you can compare the effects of market volatilities on BigBearai Holdings and ExlService Holdings 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 BigBearai Holdings with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BigBearai Holdings and ExlService Holdings.
Diversification Opportunities for BigBearai Holdings and ExlService Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BigBearai and ExlService is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BigBearai Holdings and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and BigBearai Holdings 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 BigBearai Holdings are associated (or correlated) with ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of BigBearai Holdings i.e., BigBearai Holdings and ExlService Holdings go up and down completely randomly.
Pair Corralation between BigBearai Holdings and ExlService Holdings
Given the investment horizon of 90 days BigBearai Holdings is expected to generate 14.37 times less return on investment than ExlService Holdings. In addition to that, BigBearai Holdings is 5.66 times more volatile than ExlService Holdings. It trades about 0.0 of its total potential returns per unit of risk. ExlService Holdings is currently generating about 0.38 per unit of volatility. If you would invest 4,473 in ExlService Holdings on November 4, 2024 and sell it today you would earn a total of 553.00 from holding ExlService Holdings or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BigBearai Holdings vs. ExlService Holdings
Performance |
| Timeline |
| BigBearai Holdings |
| ExlService Holdings |
BigBearai Holdings and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BigBearai Holdings and ExlService Holdings
The main advantage of trading using opposite BigBearai Holdings and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BigBearai Holdings position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| BigBearai Holdings vs. Innodata | BigBearai Holdings vs. CLPS Inc | BigBearai Holdings vs. ARB IOT Group | BigBearai Holdings vs. FiscalNote Holdings |
| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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