Correlation Between ExlService Holdings and CSE Global
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and CSE Global 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 CSE Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and CSE Global Limited, you can compare the effects of market volatilities on ExlService Holdings and CSE Global 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 CSE Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and CSE Global.
Diversification Opportunities for ExlService Holdings and CSE Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ExlService and CSE is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and CSE Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global Limited 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 CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global Limited has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and CSE Global go up and down completely randomly.
Pair Corralation between ExlService Holdings and CSE Global
Given the investment horizon of 90 days ExlService Holdings is expected to generate 1.63 times less return on investment than CSE Global. But when comparing it to its historical volatility, ExlService Holdings is 3.05 times less risky than CSE Global. It trades about 0.05 of its potential returns per unit of risk. CSE Global Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 30.00 in CSE Global Limited on November 5, 2024 and sell it today you would earn a total of 2.00 from holding CSE Global Limited or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.59% |
| Values | Daily Returns |
ExlService Holdings vs. CSE Global Limited
Performance |
| Timeline |
| ExlService Holdings |
| CSE Global Limited |
ExlService Holdings and CSE Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and CSE Global
The main advantage of trading using opposite ExlService Holdings and CSE Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, CSE Global 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 CSE Global will offset losses from the drop in CSE Global's long position.| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS Holdings |
| CSE Global vs. Appen Limited | CSE Global vs. Appen Limited | CSE Global vs. Deveron Corp | CSE Global vs. Capgemini SE ADR |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |