Correlation Between ExlService Holdings and Soluna Holdings
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Soluna Holdings 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 Soluna Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Soluna Holdings Preferred, you can compare the effects of market volatilities on ExlService Holdings and Soluna Holdings 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 Soluna Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Soluna Holdings.
Diversification Opportunities for ExlService Holdings and Soluna Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExlService and Soluna is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Soluna Holdings Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soluna Holdings Preferred 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 Soluna Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soluna Holdings Preferred has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Soluna Holdings go up and down completely randomly.
Pair Corralation between ExlService Holdings and Soluna Holdings
Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.29 times more return on investment than Soluna Holdings. However, ExlService Holdings is 3.44 times less risky than Soluna Holdings. It trades about 0.09 of its potential returns per unit of risk. Soluna Holdings Preferred is currently generating about -0.05 per unit of risk. If you would invest 4,677 in ExlService Holdings on October 26, 2024 and sell it today you would earn a total of 217.50 from holding ExlService Holdings or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.5% |
| Values | Daily Returns |
ExlService Holdings vs. Soluna Holdings Preferred
Performance |
| Timeline |
| ExlService Holdings |
| Soluna Holdings Preferred |
ExlService Holdings and Soluna Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Soluna Holdings
The main advantage of trading using opposite ExlService Holdings and Soluna Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Soluna Holdings 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 Soluna Holdings will offset losses from the drop in Soluna Holdings' long position.| ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. TTEC Holdings | ExlService Holdings vs. WNS Holdings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |