Correlation Between Exela Technologies and Vertex
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Vertex 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 Vertex 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 Vertex, you can compare the effects of market volatilities on Exela Technologies and Vertex 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 Vertex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Vertex.
Diversification Opportunities for Exela Technologies and Vertex
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exela and Vertex is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and Vertex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vertex 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 Vertex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vertex has no effect on the direction of Exela Technologies i.e., Exela Technologies and Vertex go up and down completely randomly.
Pair Corralation between Exela Technologies and Vertex
If you would invest 5,320 in Vertex on November 3, 2024 and sell it today you would earn a total of 455.00 from holding Vertex or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Vertex
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vertex |
Exela Technologies and Vertex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Vertex
The main advantage of trading using opposite Exela Technologies and Vertex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Vertex 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 Vertex will offset losses from the drop in Vertex'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 |
| Vertex vs. Expensify | Vertex vs. Clearwater Analytics Holdings | Vertex vs. Sprinklr | Vertex vs. Alkami Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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