Correlation Between Workiva and ExlService Holdings

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

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

Diversification Opportunities for Workiva and ExlService Holdings

-0.24

Correlation Coefficient

Workiva  ExlService Holdings

Very good diversification

The 3 months correlation between Workiva and ExlService is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Workiva 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 Workiva 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 Workiva i.e., Workiva and ExlService Holdings go up and down completely randomly.

Pair Corralation between Workiva and ExlService Holdings

Allowing for the 90-day total investment horizon Workiva is expected to generate 2.67 times more return on investment than ExlService Holdings. However, Workiva is 2.67 times more volatile than ExlService Holdings. It trades about 0.04 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.08 per unit of risk. If you would invest  7,009  in Workiva on May 18, 2025 and sell it today you would earn a total of  466.00  from holding Workiva or generate 6.65% return on investment over 90 days.

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

Workiva  vs.  ExlService Holdings

Workiva

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile forward-looking signals, Workiva may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 Workiva and ExlService Holdings

The main advantage of trading using opposite Workiva and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva 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 Workiva 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.