Correlation Between Excel Corp and Euronet Worldwide
Can any of the company-specific risk be diversified away by investing in both Excel Corp and Euronet Worldwide 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 Excel Corp and Euronet Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excel Corp and Euronet Worldwide, you can compare the effects of market volatilities on Excel Corp and Euronet Worldwide 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 Excel Corp with a short position of Euronet Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excel Corp and Euronet Worldwide.
Diversification Opportunities for Excel Corp and Euronet Worldwide
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Excel and Euronet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Excel Corp and Euronet Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euronet Worldwide and Excel Corp 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 Excel Corp are associated (or correlated) with Euronet Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euronet Worldwide has no effect on the direction of Excel Corp i.e., Excel Corp and Euronet Worldwide go up and down completely randomly.
Pair Corralation between Excel Corp and Euronet Worldwide
Given the investment horizon of 90 days Excel Corp is expected to under-perform the Euronet Worldwide. In addition to that, Excel Corp is 15.8 times more volatile than Euronet Worldwide. It trades about -0.22 of its total potential returns per unit of risk. Euronet Worldwide is currently generating about -0.17 per unit of volatility. If you would invest 10,863 in Euronet Worldwide on January 20, 2024 and sell it today you would lose (559.00) from holding Euronet Worldwide or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Excel Corp vs. Euronet Worldwide
Performance |
| Timeline |
| Excel Corp |
| Euronet Worldwide |
Excel Corp and Euronet Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excel Corp and Euronet Worldwide
The main advantage of trading using opposite Excel Corp and Euronet Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excel Corp position performs unexpectedly, Euronet Worldwide 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 Euronet Worldwide will offset losses from the drop in Euronet Worldwide's long position.| Excel Corp vs. ASGN Inc | Excel Corp vs. ExlService Holdings | Excel Corp vs. CACI International | Excel Corp vs. CLARIVATE PLC |
| Euronet Worldwide vs. Palo Alto Networks | Euronet Worldwide vs. Zscaler | Euronet Worldwide vs. Cloudflare | Euronet Worldwide vs. Okta Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |