Correlation Between Impulse Fitness and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Impulse Fitness and Exail 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 Impulse Fitness and Exail Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impulse Fitness Solutions and Exail Technologies SA, you can compare the effects of market volatilities on Impulse Fitness and Exail 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 Impulse Fitness with a short position of Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impulse Fitness and Exail Technologies.
Diversification Opportunities for Impulse Fitness and Exail Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impulse and Exail is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Impulse Fitness Solutions and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies and Impulse Fitness 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 Impulse Fitness Solutions are associated (or correlated) with Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Impulse Fitness i.e., Impulse Fitness and Exail Technologies go up and down completely randomly.
Pair Corralation between Impulse Fitness and Exail Technologies
Assuming the 90 days trading horizon Impulse Fitness Solutions is expected to under-perform the Exail Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Impulse Fitness Solutions is 1.28 times less risky than Exail Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The Exail Technologies SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,255 in Exail Technologies SA on September 1, 2024 and sell it today you would lose (495.00) from holding Exail Technologies SA or give up 21.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impulse Fitness Solutions vs. Exail Technologies SA
Performance |
| Timeline |
| Impulse Fitness Solutions |
| Exail Technologies |
Impulse Fitness and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impulse Fitness and Exail Technologies
The main advantage of trading using opposite Impulse Fitness and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impulse Fitness position performs unexpectedly, Exail 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Impulse Fitness vs. Trigano SA | Impulse Fitness vs. Bonduelle SCA | Impulse Fitness vs. Imerys SA | Impulse Fitness vs. Manitou BF SA |
| Exail Technologies vs. ISPD Network SA | Exail Technologies vs. Gaztransport Technigaz SAS | Exail Technologies vs. Covivio Hotels | Exail Technologies vs. Fill Up Media |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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