Correlation Between Exela and DOW

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

Specify exactly 2 symbols:

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

Diversification Opportunities for Exela and DOW

0.82
  Correlation Coefficient
Exela
DOW

Very poor diversification

The 3 months correlation between Exela and DOW is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Inc and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW and Exela 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 Exela are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Exela i.e. Exela and DOW go up and down completely randomly.
    Optimize

Pair Corralation between Exela and DOW

Given the investment horizon of 30 days, Exela is expected to generate 8.81 times more return on investment than DOW. However, Exela is 8.81 times more volatile than DOW. It trades about 0.16 of its potential returns per unit of risk. DOW is currently generating about 0.09 per unit of risk. If you would invest  19.00  in Exela on June 10, 2020 and sell it today you would earn a total of  30.00  from holding Exela or generate 157.89% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Exela Technologies Inc  vs.  DOW

 Performance (%) 
      Timeline 
 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.


 
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page