Correlation Between ExlService Holdings and International Money
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and International Money 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 International Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and International Money Express, you can compare the effects of market volatilities on ExlService Holdings and International Money 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 International Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and International Money.
Diversification Opportunities for ExlService Holdings and International Money
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ExlService and International is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and International Money Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Money 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 International Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Money has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and International Money go up and down completely randomly.
Pair Corralation between ExlService Holdings and International Money
Given the investment horizon of 90 days ExlService Holdings is expected to generate 1.69 times less return on investment than International Money. But when comparing it to its historical volatility, ExlService Holdings is 1.82 times less risky than International Money. It trades about 0.33 of its potential returns per unit of risk. International Money Express is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,753 in International Money Express on August 31, 2024 and sell it today you would earn a total of 357.00 from holding International Money Express or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. International Money Express
Performance |
| Timeline |
| ExlService Holdings |
| International Money |
ExlService Holdings and International Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and International Money
The main advantage of trading using opposite ExlService Holdings and International Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, International Money 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 International Money will offset losses from the drop in International Money's long position.| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS Holdings |
| International Money vs. NetScout Systems | International Money vs. Consensus Cloud Solutions | International Money vs. CSG Systems International | International Money vs. EverCommerce |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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