Correlation Between Sapiens International and EXELON
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By analyzing existing cross correlation between Sapiens International and EXELON GENERATION LLC, you can compare the effects of market volatilities on Sapiens International and EXELON 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 Sapiens International with a short position of EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sapiens International and EXELON.
Diversification Opportunities for Sapiens International and EXELON
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sapiens and EXELON is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sapiens International and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC and Sapiens International 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 Sapiens International are associated (or correlated) with EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Sapiens International i.e., Sapiens International and EXELON go up and down completely randomly.
Pair Corralation between Sapiens International and EXELON
Given the investment horizon of 90 days Sapiens International is expected to generate 1.42 times more return on investment than EXELON. However, Sapiens International is 1.42 times more volatile than EXELON GENERATION LLC. It trades about 0.12 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.09 per unit of risk. If you would invest 2,661 in Sapiens International on November 29, 2024 and sell it today you would earn a total of 129.00 from holding Sapiens International or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Sapiens International vs. EXELON GENERATION LLC
Performance |
| Timeline |
| Sapiens International |
| EXELON GENERATION LLC |
Sapiens International and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sapiens International and EXELON
The main advantage of trading using opposite Sapiens International and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sapiens International position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| Sapiens International vs. PROS Holdings | Sapiens International vs. Meridianlink | Sapiens International vs. Enfusion | Sapiens International vs. PDF Solutions |
| EXELON vs. Fidus Investment Corp | EXELON vs. Oasis Hotel Resort | EXELON vs. MedX Health Corp | EXELON vs. Gladstone Investment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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