Correlation Between Gartner and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Gartner 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 Gartner and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gartner and ExlService Holdings, you can compare the effects of market volatilities on Gartner 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 Gartner with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gartner and ExlService Holdings.
Diversification Opportunities for Gartner and ExlService Holdings
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gartner and ExlService is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gartner and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Gartner 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 Gartner 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 Gartner i.e., Gartner and ExlService Holdings go up and down completely randomly.
Pair Corralation between Gartner and ExlService Holdings
Allowing for the 90-day total investment horizon Gartner is expected to generate 0.86 times more return on investment than ExlService Holdings. However, Gartner is 1.16 times less risky than ExlService Holdings. It trades about 0.1 of its potential returns per unit of risk. ExlService Holdings is currently generating about 0.0 per unit of risk. If you would invest 32,954 in Gartner on January 19, 2024 and sell it today you would earn a total of 12,007 from holding Gartner or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gartner vs. ExlService Holdings
Performance |
| Timeline |
| Gartner |
| ExlService Holdings |
Gartner and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gartner and ExlService Holdings
The main advantage of trading using opposite Gartner and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gartner 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.| Gartner vs. International Business Machines | Gartner vs. Aurora Innovation | Gartner vs. ARB IOT Group | Gartner vs. 9F Inc |
| ExlService Holdings vs. International Business Machines | ExlService Holdings vs. Aurora Innovation | ExlService Holdings vs. ARB IOT Group | ExlService Holdings vs. 9F 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |