Correlation Between Exela Technologies and Digital Turbine
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Digital Turbine 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 Exela Technologies and Digital Turbine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and Digital Turbine, you can compare the effects of market volatilities on Exela Technologies and Digital Turbine 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 Exela Technologies with a short position of Digital Turbine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Digital Turbine.
Diversification Opportunities for Exela Technologies and Digital Turbine
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exela and Digital is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Digital Turbine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Turbine and Exela Technologies 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 Exela Technologies are associated (or correlated) with Digital Turbine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Turbine has no effect on the direction of Exela Technologies i.e., Exela Technologies and Digital Turbine go up and down completely randomly.
Pair Corralation between Exela Technologies and Digital Turbine
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the Digital Turbine. In addition to that, Exela Technologies is 1.11 times more volatile than Digital Turbine. It trades about -0.3 of its total potential returns per unit of risk. Digital Turbine is currently generating about -0.28 per unit of volatility. If you would invest 353.00 in Digital Turbine on August 31, 2024 and sell it today you would lose (210.00) from holding Digital Turbine or give up 59.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Exela Technologies vs. Digital Turbine
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Digital Turbine |
Exela Technologies and Digital Turbine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Digital Turbine
The main advantage of trading using opposite Exela Technologies and Digital Turbine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Digital Turbine 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 Digital Turbine will offset losses from the drop in Digital Turbine's long position.| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
| Digital Turbine vs. Autodesk | Digital Turbine vs. Intuit Inc | Digital Turbine vs. Zoom Video Communications | Digital Turbine vs. Snowflake |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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