Correlation Between Marketwise and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Marketwise 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 Marketwise and Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marketwise and Exela Technologies, you can compare the effects of market volatilities on Marketwise 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 Marketwise with a short position of Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marketwise and Exela Technologies.
Diversification Opportunities for Marketwise and Exela Technologies
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marketwise and Exela is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Marketwise and Exela Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies and Marketwise 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 Marketwise 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 Marketwise i.e., Marketwise and Exela Technologies go up and down completely randomly.
Pair Corralation between Marketwise and Exela Technologies
Given the investment horizon of 90 days Marketwise is expected to generate 0.48 times more return on investment than Exela Technologies. However, Marketwise is 2.08 times less risky than Exela Technologies. It trades about -0.11 of its potential returns per unit of risk. Exela Technologies is currently generating about -0.29 per unit of risk. If you would invest 61.00 in Marketwise on August 28, 2024 and sell it today you would lose (10.00) from holding Marketwise or give up 16.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
Marketwise vs. Exela Technologies
Performance |
| Timeline |
| Marketwise |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marketwise and Exela Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marketwise and Exela Technologies
The main advantage of trading using opposite Marketwise and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marketwise 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.| Marketwise vs. Blackboxstocks | Marketwise vs. Enfusion | Marketwise vs. Issuer Direct Corp | Marketwise vs. eGain |
| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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