Correlation Between Exela Technologies and Science Technology
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Science Technology 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 Science Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and Science Technology Fund, you can compare the effects of market volatilities on Exela Technologies and Science Technology 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 Science Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Science Technology.
Diversification Opportunities for Exela Technologies and Science Technology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exela and Science is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Science Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Technology 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 Science Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Technology has no effect on the direction of Exela Technologies i.e., Exela Technologies and Science Technology go up and down completely randomly.
Pair Corralation between Exela Technologies and Science Technology
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the Science Technology. In addition to that, Exela Technologies is 8.65 times more volatile than Science Technology Fund. It trades about -0.29 of its total potential returns per unit of risk. Science Technology Fund is currently generating about 0.12 per unit of volatility. If you would invest 3,149 in Science Technology Fund on August 27, 2024 and sell it today you would earn a total of 108.00 from holding Science Technology Fund or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Exela Technologies vs. Science Technology Fund
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Science Technology |
Exela Technologies and Science Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Science Technology
The main advantage of trading using opposite Exela Technologies and Science Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Science Technology 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 Science Technology will offset losses from the drop in Science Technology's long position.| Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. Quhuo | Exela Technologies vs. CXApp Inc |
| Science Technology vs. VEEA | Science Technology vs. VivoPower International PLC | Science Technology vs. WEBTOON Entertainment Common | Science Technology vs. Mid Cap Index |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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