Correlation Between Exail Technologies and Reworld Media
Can any of the company-specific risk be diversified away by investing in both Exail Technologies and Reworld Media 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 Exail Technologies and Reworld Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exail Technologies SA and Reworld Media, you can compare the effects of market volatilities on Exail Technologies and Reworld Media 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 Exail Technologies with a short position of Reworld Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and Reworld Media.
Diversification Opportunities for Exail Technologies and Reworld Media
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exail and Reworld is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA and Reworld Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reworld Media and Exail Technologies 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 Exail Technologies SA are associated (or correlated) with Reworld Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reworld Media has no effect on the direction of Exail Technologies i.e., Exail Technologies and Reworld Media go up and down completely randomly.
Pair Corralation between Exail Technologies and Reworld Media
Assuming the 90 days trading horizon Exail Technologies SA is expected to generate 0.78 times more return on investment than Reworld Media. However, Exail Technologies SA is 1.28 times less risky than Reworld Media. It trades about 0.0 of its potential returns per unit of risk. Reworld Media is currently generating about -0.08 per unit of risk. If you would invest 1,936 in Exail Technologies SA on August 30, 2024 and sell it today you would lose (230.00) from holding Exail Technologies SA or give up 11.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exail Technologies SA vs. Reworld Media
Performance |
| Timeline |
| Exail Technologies |
| Reworld Media |
Exail Technologies and Reworld Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exail Technologies and Reworld Media
The main advantage of trading using opposite Exail Technologies and Reworld Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exail Technologies position performs unexpectedly, Reworld Media 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 Reworld Media will offset losses from the drop in Reworld Media's long position.| Exail Technologies vs. Airbus Group SE | Exail Technologies vs. Safran SA | Exail Technologies vs. Thales SA |
| Reworld Media vs. Manitou BF SA | Reworld Media vs. Ossiam Minimum Variance | Reworld Media vs. Ekinops SA | Reworld Media vs. Orapi SA |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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