Correlation Between ExlService Holdings and Concentrix
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Concentrix 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 ExlService Holdings and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Concentrix, you can compare the effects of market volatilities on ExlService Holdings and Concentrix 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 ExlService Holdings with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Concentrix.
Diversification Opportunities for ExlService Holdings and Concentrix
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ExlService and Concentrix is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and ExlService Holdings 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 ExlService Holdings are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Concentrix go up and down completely randomly.
Pair Corralation between ExlService Holdings and Concentrix
Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.56 times more return on investment than Concentrix. However, ExlService Holdings is 1.78 times less risky than Concentrix. It trades about 0.45 of its potential returns per unit of risk. Concentrix is currently generating about 0.03 per unit of risk. If you would invest 3,874 in ExlService Holdings on August 28, 2024 and sell it today you would earn a total of 803.00 from holding ExlService Holdings or generate 20.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. Concentrix
Performance |
| Timeline |
| ExlService Holdings |
| Concentrix |
ExlService Holdings and Concentrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Concentrix
The main advantage of trading using opposite ExlService Holdings and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.| ExlService Holdings vs. Oneconnect Financial Technology | ExlService Holdings vs. Global Business Travel | ExlService Holdings vs. Alight Inc | ExlService Holdings vs. CS Disco LLC |
| Concentrix vs. Oneconnect Financial Technology | Concentrix vs. Global Business Travel | Concentrix vs. Alight Inc | Concentrix vs. CS Disco LLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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