Correlation Between Cantaloupe and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Cantaloupe 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 Cantaloupe and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantaloupe and ExlService Holdings, you can compare the effects of market volatilities on Cantaloupe 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 Cantaloupe with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantaloupe and ExlService Holdings.
Diversification Opportunities for Cantaloupe and ExlService Holdings
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cantaloupe and ExlService is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cantaloupe and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Cantaloupe 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 Cantaloupe 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 Cantaloupe i.e., Cantaloupe and ExlService Holdings go up and down completely randomly.
Pair Corralation between Cantaloupe and ExlService Holdings
Given the investment horizon of 90 days Cantaloupe is expected to under-perform the ExlService Holdings. In addition to that, Cantaloupe is 1.51 times more volatile than ExlService Holdings. It trades about -0.04 of its total potential returns per unit of risk. ExlService Holdings is currently generating about 0.24 per unit of volatility. If you would invest 3,874 in ExlService Holdings on October 26, 2024 and sell it today you would earn a total of 1,038 from holding ExlService Holdings or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantaloupe vs. ExlService Holdings
Performance |
| Timeline |
| Cantaloupe |
| ExlService Holdings |
Cantaloupe and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantaloupe and ExlService Holdings
The main advantage of trading using opposite Cantaloupe and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantaloupe 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.| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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