Correlation Between ExlService Holdings and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Cantaloupe 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 Cantaloupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Cantaloupe, you can compare the effects of market volatilities on ExlService Holdings and Cantaloupe 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 Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Cantaloupe.
Diversification Opportunities for ExlService Holdings and Cantaloupe
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExlService and Cantaloupe is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe 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 Cantaloupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantaloupe has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Cantaloupe go up and down completely randomly.
Pair Corralation between ExlService Holdings and Cantaloupe
Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.66 times more return on investment than Cantaloupe. However, ExlService Holdings is 1.51 times less risky than Cantaloupe. It trades about 0.24 of its potential returns per unit of risk. Cantaloupe is currently generating about -0.04 per unit of risk. 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 |
ExlService Holdings vs. Cantaloupe
Performance |
| Timeline |
| ExlService Holdings |
| Cantaloupe |
ExlService Holdings and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Cantaloupe
The main advantage of trading using opposite ExlService Holdings and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Cantaloupe 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 Cantaloupe will offset losses from the drop in Cantaloupe's long position.| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS Holdings |
| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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