Correlation Between Clearwater Analytics and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics 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 Clearwater Analytics and Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and Exela Technologies Preferred, you can compare the effects of market volatilities on Clearwater Analytics 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 Clearwater Analytics with a short position of Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Exela Technologies.
Diversification Opportunities for Clearwater Analytics and Exela Technologies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearwater and Exela is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Exela Technologies Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies and Clearwater Analytics 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 Clearwater Analytics Holdings 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 Clearwater Analytics i.e., Clearwater Analytics and Exela Technologies go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Exela Technologies
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.26 times more return on investment than Exela Technologies. However, Clearwater Analytics Holdings is 3.86 times less risky than Exela Technologies. It trades about 0.09 of its potential returns per unit of risk. Exela Technologies Preferred is currently generating about -0.04 per unit of risk. If you would invest 1,581 in Clearwater Analytics Holdings on August 24, 2024 and sell it today you would earn a total of 1,613 from holding Clearwater Analytics Holdings or generate 102.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Exela Technologies Preferred
Performance |
| Timeline |
| Clearwater Analytics |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Clearwater Analytics and Exela Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Exela Technologies
The main advantage of trading using opposite Clearwater Analytics and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics 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.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Envestnet |
| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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