Correlation Between ExlService Holdings and Euronet Worldwide
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Euronet Worldwide 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 ExlService Holdings and Euronet Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Euronet Worldwide, you can compare the effects of market volatilities on ExlService Holdings and Euronet Worldwide 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 ExlService Holdings with a short position of Euronet Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Euronet Worldwide.
Diversification Opportunities for ExlService Holdings and Euronet Worldwide
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ExlService and Euronet is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Euronet Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronet Worldwide and ExlService Holdings 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 ExlService Holdings are associated (or correlated) with Euronet Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronet Worldwide has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Euronet Worldwide go up and down completely randomly.
Pair Corralation between ExlService Holdings and Euronet Worldwide
Given the investment horizon of 90 days ExlService Holdings is expected to under-perform the Euronet Worldwide. In addition to that, ExlService Holdings is 1.24 times more volatile than Euronet Worldwide. It trades about -0.1 of its total potential returns per unit of risk. Euronet Worldwide is currently generating about -0.1 per unit of volatility. If you would invest 10,912 in Euronet Worldwide on January 26, 2024 and sell it today you would lose (345.00) from holding Euronet Worldwide or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. Euronet Worldwide
Performance |
| Timeline |
| ExlService Holdings |
| Euronet Worldwide |
ExlService Holdings and Euronet Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Euronet Worldwide
The main advantage of trading using opposite ExlService Holdings and Euronet Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Euronet Worldwide 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 Euronet Worldwide will offset losses from the drop in Euronet Worldwide's long position.| ExlService Holdings vs. CACI International | ExlService Holdings vs. CDW Corp | ExlService Holdings vs. Jack Henry Associates | ExlService Holdings vs. Broadridge Financial Solutions |
| Euronet Worldwide vs. Evertec | Euronet Worldwide vs. i3 Verticals | Euronet Worldwide vs. EverCommerce | Euronet Worldwide vs. NetScout Systems |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |