Correlation Between 58 and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both 58 and ExlService Holdings 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 58 and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 58 Inc and ExlService Holdings, you can compare the effects of market volatilities on 58 and ExlService Holdings 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 58 with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 58 and ExlService Holdings.
Diversification Opportunities for 58 and ExlService Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 58 and ExlService is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 58 Inc and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and 58 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 58 Inc are associated (or correlated) with ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of 58 i.e., 58 and ExlService Holdings go up and down completely randomly.
Pair Corralation between 58 and ExlService Holdings
If you would invest 2,768 in ExlService Holdings on January 25, 2024 and sell it today you would earn a total of 194.00 from holding ExlService Holdings or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
58 Inc vs. ExlService Holdings
Performance |
| Timeline |
| 58 Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ExlService Holdings |
58 and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 58 and ExlService Holdings
The main advantage of trading using opposite 58 and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 58 position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.The idea behind 58 Inc and ExlService Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ExlService Holdings vs. Formula Systems 1985 | ExlService Holdings vs. CSP Inc | ExlService Holdings vs. Nayax | ExlService Holdings vs. The Hackett Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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