Correlation Between Computer Task and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Computer Task 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 Computer Task and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Task Group and ExlService Holdings, you can compare the effects of market volatilities on Computer Task 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 Computer Task with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Task and ExlService Holdings.
Diversification Opportunities for Computer Task and ExlService Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Computer and ExlService is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Computer Task Group and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Computer Task 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 Computer Task Group 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 Computer Task i.e., Computer Task and ExlService Holdings go up and down completely randomly.
Pair Corralation between Computer Task and ExlService Holdings
If you would invest 1,050 in Computer Task Group on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Computer Task Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Computer Task Group vs. ExlService Holdings
Performance |
| Timeline |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ExlService Holdings |
Computer Task and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Task and ExlService Holdings
The main advantage of trading using opposite Computer Task and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Task 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.| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Clarivate Plc | Computer Task vs. Nayax |
| ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. CACI International | ExlService Holdings vs. Perficient | ExlService Holdings vs. Science Applications International |
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.
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