Correlation Between Phoenix New and ExlService Holdings

Can any of the company-specific risk be diversified away by investing in both Phoenix New 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 Phoenix New and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Phoenix New Media and ExlService Holdings, you can compare the effects of market volatilities on Phoenix New 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 Phoenix New with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and ExlService Holdings.

Diversification Opportunities for Phoenix New and ExlService Holdings

-0.18

Correlation Coefficient

Phoenix New  ExlService Holdings

Good diversification

The 3 months correlation between Phoenix and ExlService is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Phoenix New 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 Phoenix New Media 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 Phoenix New i.e., Phoenix New and ExlService Holdings go up and down completely randomly.

Pair Corralation between Phoenix New and ExlService Holdings

Given the investment horizon of 90 days Phoenix New Media is expected to generate 2.4 times more return on investment than ExlService Holdings. However, Phoenix New is 2.4 times more volatile than ExlService Holdings. It trades about 0.02 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.12 per unit of risk. If you would invest  215.00  in Phoenix New Media on April 30, 2025 and sell it today you would lose (3.00) from holding Phoenix New Media or give up 1.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Phoenix New Media  vs.  ExlService Holdings

Phoenix New Media

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Phoenix New Media are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Phoenix New is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

ExlService Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ExlService Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Phoenix New and ExlService Holdings

The main advantage of trading using opposite Phoenix New and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New 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 Phoenix New Media 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.