Correlation Between SBA Communications and Exela Technologies

Can any of the company-specific risk be diversified away by investing in both SBA Communications and Exela Technologies 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 SBA Communications and Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SBA Communications Corp and Exela Technologies, you can compare the effects of market volatilities on SBA Communications and Exela Technologies 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 SBA Communications with a short position of Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBA Communications and Exela Technologies.

Diversification Opportunities for SBA Communications and Exela Technologies

-0.49

Correlation Coefficient

SBA Communications  Exela Technologies

Very good diversification

The 3 months correlation between SBA and Exela is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding SBA Communications Corp and Exela Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies and SBA Communications 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 SBA Communications Corp are associated (or correlated) with Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of SBA Communications i.e., SBA Communications and Exela Technologies go up and down completely randomly.

Pair Corralation between SBA Communications and Exela Technologies

Given the investment horizon of 90 days SBA Communications Corp is expected to under-perform the Exela Technologies. But the stock apears to be less risky and, when comparing its historical volatility, SBA Communications Corp is 210.86 times less risky than Exela Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The Exela Technologies is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Exela Technologies on July 6, 2025 and sell it today you would earn a total of  20.00  from holding Exela Technologies or generate 400.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

SBA Communications Corp  vs.  Exela Technologies

SBA Communications Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days SBA Communications Corp 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 basic indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Exela Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Exela Technologies are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating essential indicators, Exela Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SBA Communications and Exela Technologies

The main advantage of trading using opposite SBA Communications and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBA Communications position performs unexpectedly, Exela Technologies 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 Exela Technologies will offset losses from the drop in Exela Technologies' long position.

The idea behind SBA Communications Corp and Exela Technologies 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.