Correlation Between ExlService Holdings and Kelly Services
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Kelly Services 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 Kelly Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Kelly Services B, you can compare the effects of market volatilities on ExlService Holdings and Kelly Services 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 Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Kelly Services.
Diversification Opportunities for ExlService Holdings and Kelly Services
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ExlService and Kelly is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Kelly Services B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services B 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services B has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Kelly Services go up and down completely randomly.
Pair Corralation between ExlService Holdings and Kelly Services
Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.54 times more return on investment than Kelly Services. However, ExlService Holdings is 1.86 times less risky than Kelly Services. It trades about 0.31 of its potential returns per unit of risk. Kelly Services B is currently generating about -0.22 per unit of risk. If you would invest 3,792 in ExlService Holdings on August 28, 2024 and sell it today you would earn a total of 885.00 from holding ExlService Holdings or generate 23.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. Kelly Services B
Performance |
| Timeline |
| ExlService Holdings |
| Kelly Services B |
ExlService Holdings and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Kelly Services
The main advantage of trading using opposite ExlService Holdings and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' 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 |
| Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Kforce Inc | Kelly Services vs. Korn Ferry | Kelly Services vs. Kelly Services A |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
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| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |