Correlation Between ExlService Holdings and Data Storage
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Data Storage 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 Data Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Data Storage Corp, you can compare the effects of market volatilities on ExlService Holdings and Data Storage 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 Data Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Data Storage.
Diversification Opportunities for ExlService Holdings and Data Storage
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ExlService and Data is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Data Storage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage Corp 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 Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage Corp has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Data Storage go up and down completely randomly.
Pair Corralation between ExlService Holdings and Data Storage
Given the investment horizon of 90 days ExlService Holdings is expected to under-perform the Data Storage. But the stock apears to be less risky and, when comparing its historical volatility, ExlService Holdings is 3.85 times less risky than Data Storage. The stock trades about -0.03 of its potential returns per unit of risk. The Data Storage Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Data Storage Corp on April 26, 2025 and sell it today you would earn a total of 128.00 from holding Data Storage Corp or generate 33.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ExlService Holdings vs. Data Storage Corp
Performance |
Timeline |
ExlService Holdings |
Data Storage Corp |
ExlService Holdings and Data Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ExlService Holdings and Data Storage
The main advantage of trading using opposite ExlService Holdings and Data Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Data Storage 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 Data Storage will offset losses from the drop in Data Storage's long position.ExlService Holdings vs. WNS Holdings | ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. CACI International |
Data Storage vs. Widepoint C | Data Storage vs. Castellum | Data Storage vs. Soluna Holdings | Data Storage vs. High Wire Networks |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |