Correlation Between Exela Technologies and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Jacob Internet 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 Jacob Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies Preferred and Jacob Internet Fund, you can compare the effects of market volatilities on Exela Technologies and Jacob Internet 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 Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Jacob Internet.
Diversification Opportunities for Exela Technologies and Jacob Internet
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Exela and Jacob is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet 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 Preferred are associated (or correlated) with Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Exela Technologies i.e., Exela Technologies and Jacob Internet go up and down completely randomly.
Pair Corralation between Exela Technologies and Jacob Internet
Assuming the 90 days horizon Exela Technologies Preferred is expected to under-perform the Jacob Internet. In addition to that, Exela Technologies is 4.98 times more volatile than Jacob Internet Fund. It trades about -0.02 of its total potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.05 per unit of volatility. If you would invest 412.00 in Jacob Internet Fund on August 29, 2024 and sell it today you would earn a total of 187.00 from holding Jacob Internet Fund or generate 45.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Jacob Internet Fund
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jacob Internet |
Exela Technologies and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Jacob Internet
The main advantage of trading using opposite Exela Technologies and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
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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