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
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Excel and Euronet is 0.17. 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 15.43 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 -0.09 per unit of volatility. If you would invest 10,879 in Euronet Worldwide on January 25, 2024 and sell it today you would lose (312.00) from holding Euronet Worldwide or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| 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. Castellum | Excel Corp vs. Soluna Holdings | Excel Corp vs. Appen Limited | Excel Corp vs. Usio Inc |
| Euronet Worldwide vs. Evertec | Euronet Worldwide vs. i3 Verticals | Euronet Worldwide vs. EverCommerce | Euronet Worldwide vs. NetScout Systems |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |