Correlation Between Vinco Ventures and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Vinco Ventures and Exela Technologies 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 Vinco Ventures and Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinco Ventures and Exela Technologies, you can compare the effects of market volatilities on Vinco Ventures and Exela Technologies 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 Vinco Ventures with a short position of Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinco Ventures and Exela Technologies.
Diversification Opportunities for Vinco Ventures and Exela Technologies
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vinco and Exela is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Vinco Ventures and Exela Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies and Vinco Ventures 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 Vinco Ventures are associated (or correlated) with Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of Vinco Ventures i.e., Vinco Ventures and Exela Technologies go up and down completely randomly.
Pair Corralation between Vinco Ventures and Exela Technologies
If you would invest 111.00 in Exela Technologies on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Exela Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinco Ventures vs. Exela Technologies
Performance |
| Timeline |
| Vinco Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vinco Ventures and Exela Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinco Ventures and Exela Technologies
The main advantage of trading using opposite Vinco Ventures and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinco Ventures position performs unexpectedly, Exela Technologies 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 Exela Technologies will offset losses from the drop in Exela Technologies' long position.| Vinco Ventures vs. Planet Fitness | Vinco Ventures vs. Peloton Interactive | Vinco Ventures vs. Xponential Fitness | Vinco Ventures vs. Madison Square Garden |
| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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