Correlation Between Shift4 Payments and ExlService Holdings

Can any of the company-specific risk be diversified away by investing in both Shift4 Payments 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 Shift4 Payments and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shift4 Payments and ExlService Holdings, you can compare the effects of market volatilities on Shift4 Payments 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 Shift4 Payments with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shift4 Payments and ExlService Holdings.

Diversification Opportunities for Shift4 Payments and ExlService Holdings

0.83

Correlation Coefficient

Shift4 Payments  ExlService Holdings

Very poor diversification

The 3 months correlation between Shift4 and ExlService is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shift4 Payments and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Shift4 Payments 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 Shift4 Payments 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 Shift4 Payments i.e., Shift4 Payments and ExlService Holdings go up and down completely randomly.

Pair Corralation between Shift4 Payments and ExlService Holdings

Given the investment horizon of 90 days Shift4 Payments is expected to under-perform the ExlService Holdings. In addition to that, Shift4 Payments is 1.53 times more volatile than ExlService Holdings. It trades about -0.13 of its total potential returns per unit of risk. ExlService Holdings is currently generating about -0.02 per unit of volatility. If you would invest  4,299  in ExlService Holdings on September 15, 2025 and sell it today you would lose (135.00) from holding ExlService Holdings or give up 3.14% of portfolio value over 90 days.

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

Shift4 Payments  vs.  ExlService Holdings

Shift4 Payments

Risk-Adjusted Performance

Weakest

Over the last 90 days Shift4 Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ExlService Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days ExlService Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, ExlService Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Shift4 Payments and ExlService Holdings

The main advantage of trading using opposite Shift4 Payments and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shift4 Payments 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 Shift4 Payments 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.