Correlation Between Borqs Technologies and Exela Technologies
Can any of the company-specific risk be diversified away by investing in both Borqs Technologies and Exela Technologies 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 Borqs Technologies and Exela Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borqs Technologies and Exela Technologies, you can compare the effects of market volatilities on Borqs Technologies and Exela Technologies 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 Borqs Technologies with a short position of Exela Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borqs Technologies and Exela Technologies.
Diversification Opportunities for Borqs Technologies and Exela Technologies
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Borqs and Exela is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Borqs Technologies and Exela Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exela Technologies and Borqs 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 Borqs Technologies are associated (or correlated) with Exela Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exela Technologies has no effect on the direction of Borqs Technologies i.e., Borqs Technologies and Exela Technologies go up and down completely randomly.
Pair Corralation between Borqs Technologies and Exela Technologies
Given the investment horizon of 90 days Borqs Technologies is expected to generate 0.73 times more return on investment than Exela Technologies. However, Borqs Technologies is 1.37 times less risky than Exela Technologies. It trades about -0.03 of its potential returns per unit of risk. Exela Technologies is currently generating about -0.03 per unit of risk. If you would invest 30.00 in Borqs Technologies on October 22, 2024 and sell it today you would lose (10.00) from holding Borqs Technologies or give up 33.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 26.83% |
Values | Daily Returns |
Borqs Technologies vs. Exela Technologies
Performance |
Timeline |
Borqs Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Borqs Technologies and Exela Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Borqs Technologies and Exela Technologies
The main advantage of trading using opposite Borqs Technologies and Exela Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borqs Technologies position performs unexpectedly, Exela Technologies 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 Exela Technologies will offset losses from the drop in Exela Technologies' long position.Borqs Technologies vs. CXApp Inc | Borqs Technologies vs. Trust Stamp | Borqs Technologies vs. Freight Technologies | Borqs Technologies vs. Infobird Co |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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