Correlation Between Life360 and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Life360 and Exela Technologies 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 Life360 and Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life360 and Exela Technologies Preferred, you can compare the effects of market volatilities on Life360 and Exela Technologies 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 Life360 with a short position of Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life360 and Exela Technologies.
Diversification Opportunities for Life360 and Exela Technologies
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Life360 and Exela is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Life360 and Exela Technologies Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies and Life360 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 Life360 are associated (or correlated) with Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of Life360 i.e., Life360 and Exela Technologies go up and down completely randomly.
Pair Corralation between Life360 and Exela Technologies
If you would invest 1,265 in Life360 on November 3, 2024 and sell it today you would earn a total of 225.00 from holding Life360 or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Life360 vs. Exela Technologies Preferred
Performance |
| Timeline |
| Life360 |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Life360 and Exela Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life360 and Exela Technologies
The main advantage of trading using opposite Life360 and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life360 position performs unexpectedly, Exela Technologies 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 Exela Technologies will offset losses from the drop in Exela Technologies' long position.The idea behind Life360 and Exela Technologies Preferred pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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