Correlation Between Exela Technologies and Baron Fintech
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Baron Fintech 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 Baron Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and Baron Fintech, you can compare the effects of market volatilities on Exela Technologies and Baron Fintech 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 Baron Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Baron Fintech.
Diversification Opportunities for Exela Technologies and Baron Fintech
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exela and Baron is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Baron Fintech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Fintech 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 Baron Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Fintech has no effect on the direction of Exela Technologies i.e., Exela Technologies and Baron Fintech go up and down completely randomly.
Pair Corralation between Exela Technologies and Baron Fintech
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the Baron Fintech. In addition to that, Exela Technologies is 12.79 times more volatile than Baron Fintech. It trades about -0.31 of its total potential returns per unit of risk. Baron Fintech is currently generating about 0.42 per unit of volatility. If you would invest 1,674 in Baron Fintech on September 1, 2024 and sell it today you would earn a total of 170.00 from holding Baron Fintech or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Exela Technologies vs. Baron Fintech
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baron Fintech |
Exela Technologies and Baron Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Baron Fintech
The main advantage of trading using opposite Exela Technologies and Baron Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Baron Fintech 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 Baron Fintech will offset losses from the drop in Baron Fintech's long position.| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
| Baron Fintech vs. Western Asset Diversified | Baron Fintech vs. Calvert Conservative Allocation | Baron Fintech vs. Fidelity Advisor Diversified | Baron Fintech vs. Huber Capital Diversified |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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