Correlation Between Exela Technologies and Workday
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Workday 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 Workday into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and Workday, you can compare the effects of market volatilities on Exela Technologies and Workday 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 Workday. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Workday.
Diversification Opportunities for Exela Technologies and Workday
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exela and Workday is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Workday in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workday 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 Workday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workday has no effect on the direction of Exela Technologies i.e., Exela Technologies and Workday go up and down completely randomly.
Pair Corralation between Exela Technologies and Workday
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the Workday. In addition to that, Exela Technologies is 2.54 times more volatile than Workday. It trades about -0.11 of its total potential returns per unit of risk. Workday is currently generating about 0.08 per unit of volatility. If you would invest 21,112 in Workday on September 2, 2024 and sell it today you would earn a total of 3,887 from holding Workday or generate 18.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Exela Technologies vs. Workday
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Workday |
Exela Technologies and Workday Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Workday
The main advantage of trading using opposite Exela Technologies and Workday positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Workday 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 Workday will offset losses from the drop in Workday'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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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