Correlation Between Exela Technologies and PFA Invest
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and PFA Invest 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 Technologies and PFA Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies and PFA Invest Balance, you can compare the effects of market volatilities on Exela Technologies and PFA Invest 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 Technologies with a short position of PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and PFA Invest.
Diversification Opportunities for Exela Technologies and PFA Invest
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Exela and PFA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and PFA Invest Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Balance and Exela Technologies 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 Technologies are associated (or correlated) with PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Balance has no effect on the direction of Exela Technologies i.e., Exela Technologies and PFA Invest go up and down completely randomly.
Pair Corralation between Exela Technologies and PFA Invest
Given the investment horizon of 90 days Exela Technologies is expected to under-perform the PFA Invest. In addition to that, Exela Technologies is 17.59 times more volatile than PFA Invest Balance. It trades about -0.1 of its total potential returns per unit of risk. PFA Invest Balance is currently generating about 0.02 per unit of volatility. If you would invest 13,205 in PFA Invest Balance on January 24, 2024 and sell it today you would earn a total of 625.00 from holding PFA Invest Balance or generate 4.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Exela Technologies vs. PFA Invest Balance
Performance |
Timeline |
Exela Technologies |
PFA Invest Balance |
Exela Technologies and PFA Invest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exela Technologies and PFA Invest
The main advantage of trading using opposite Exela Technologies and PFA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, PFA Invest 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 PFA Invest will offset losses from the drop in PFA Invest's long position.Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Infobird Co | Exela Technologies vs. QuhuoLtd | Exela Technologies vs. CXApp Inc |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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