Correlation Between Exco Technologies and Kelso Technologies

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

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

Diversification Opportunities for Exco Technologies and Kelso Technologies

0.08

Correlation Coefficient

Exco Technologies  Kelso Technologies

Significant diversification

The 3 months correlation between Exco and Kelso is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Exco Technologies Limited and Kelso Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelso Technologies and Exco Technologies 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 Exco Technologies Limited are associated (or correlated) with Kelso Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelso Technologies has no effect on the direction of Exco Technologies i.e., Exco Technologies and Kelso Technologies go up and down completely randomly.

Pair Corralation between Exco Technologies and Kelso Technologies

Assuming the 90 days trading horizon Exco Technologies Limited is expected to generate 0.33 times more return on investment than Kelso Technologies. However, Exco Technologies Limited is 3.03 times less risky than Kelso Technologies. It trades about 0.09 of its potential returns per unit of risk. Kelso Technologies is currently generating about 0.02 per unit of risk. If you would invest  612.00  in Exco Technologies Limited on May 4, 2025 and sell it today you would earn a total of  53.00  from holding Exco Technologies Limited or generate 8.66% return on investment over 90 days.

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

Exco Technologies Limited  vs.  Kelso Technologies

Exco Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exco Technologies Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Exco Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Kelso Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kelso Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Kelso Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Exco Technologies and Kelso Technologies

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

The idea behind Exco Technologies Limited and Kelso 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.