Correlation Between Exela Technologies and Nationwide Bailard
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Nationwide Bailard 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 Nationwide Bailard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and Nationwide Bailard Technology, you can compare the effects of market volatilities on Exela Technologies and Nationwide Bailard 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 Nationwide Bailard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Nationwide Bailard.
Diversification Opportunities for Exela Technologies and Nationwide Bailard
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exela and Nationwide is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Nationwide Bailard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Bailard 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 Nationwide Bailard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Bailard has no effect on the direction of Exela Technologies i.e., Exela Technologies and Nationwide Bailard go up and down completely randomly.
Pair Corralation between Exela Technologies and Nationwide Bailard
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the Nationwide Bailard. In addition to that, Exela Technologies is 8.82 times more volatile than Nationwide Bailard Technology. It trades about -0.29 of its total potential returns per unit of risk. Nationwide Bailard Technology is currently generating about 0.07 per unit of volatility. If you would invest 3,398 in Nationwide Bailard Technology on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Nationwide Bailard Technology or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.52% |
| Values | Daily Returns |
Exela Technologies vs. Nationwide Bailard Technology
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nationwide Bailard |
Exela Technologies and Nationwide Bailard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Nationwide Bailard
The main advantage of trading using opposite Exela Technologies and Nationwide Bailard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Nationwide Bailard 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 Nationwide Bailard will offset losses from the drop in Nationwide Bailard's long position.| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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