Correlation Between Ingram Micro and ExlService Holdings

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

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

Diversification Opportunities for Ingram Micro and ExlService Holdings

-0.23

Correlation Coefficient

Ingram Micro  ExlService Holdings

Very good diversification

The 3 months correlation between Ingram and ExlService is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ingram Micro Holding and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Ingram Micro 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 Ingram Micro Holding 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 Ingram Micro i.e., Ingram Micro and ExlService Holdings go up and down completely randomly.

Pair Corralation between Ingram Micro and ExlService Holdings

Given the investment horizon of 90 days Ingram Micro Holding is expected to generate 1.22 times more return on investment than ExlService Holdings. However, Ingram Micro is 1.22 times more volatile than ExlService Holdings. It trades about -0.01 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.07 per unit of risk. If you would invest  2,051  in Ingram Micro Holding on May 17, 2025 and sell it today you would lose (55.00) from holding Ingram Micro Holding or give up 2.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Ingram Micro Holding  vs.  ExlService Holdings

Ingram Micro Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Ingram Micro Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Ingram Micro is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the 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 latest uncertain performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Ingram Micro and ExlService Holdings

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

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.