Correlation Between Chindata Group and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Chindata Group 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 Chindata Group and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chindata Group Holdings and ExlService Holdings, you can compare the effects of market volatilities on Chindata Group 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 Chindata Group with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chindata Group and ExlService Holdings.
Diversification Opportunities for Chindata Group and ExlService Holdings
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chindata and ExlService is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Chindata Group Holdings and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Chindata Group 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 Chindata Group 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 Chindata Group i.e., Chindata Group and ExlService Holdings go up and down completely randomly.
Pair Corralation between Chindata Group and ExlService Holdings
Allowing for the 90-day total investment horizon Chindata Group Holdings is expected to under-perform the ExlService Holdings. In addition to that, Chindata Group is 2.15 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 0.05 per unit of volatility. If you would invest 3,375 in ExlService Holdings on October 20, 2024 and sell it today you would earn a total of 1,340 from holding ExlService Holdings or generate 39.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.65% |
| Values | Daily Returns |
Chindata Group Holdings vs. ExlService Holdings
Performance |
| Timeline |
| Chindata Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ExlService Holdings |
Chindata Group and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chindata Group and ExlService Holdings
The main advantage of trading using opposite Chindata Group and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chindata Group 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.| Chindata Group vs. GDS Holdings | Chindata Group vs. ExlService Holdings | Chindata Group vs. Gartner | Chindata Group vs. VNET Group DRC |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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