Correlation Between Vinci SA and Exail Technologies

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

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

Diversification Opportunities for Vinci SA and Exail Technologies

0.07

Correlation Coefficient

Vinci SA  Exail Technologies

Significant diversification

The 3 months correlation between Vinci and Exail is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vinci SA and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies and Vinci SA 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 Vinci SA are associated (or correlated) with Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Vinci SA i.e., Vinci SA and Exail Technologies go up and down completely randomly.

Pair Corralation between Vinci SA and Exail Technologies

Assuming the 90 days horizon Vinci SA is expected to under-perform the Exail Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Vinci SA is 1.39 times less risky than Exail Technologies. The stock trades about -0.12 of its potential returns per unit of risk. The Exail Technologies SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,786  in Exail Technologies SA on September 26, 2024 and sell it today you would lose (64.00) from holding Exail Technologies SA or give up 3.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vinci SA  vs.  Exail Technologies SA

Vinci SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vinci SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Exail Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exail Technologies SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Exail Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vinci SA and Exail Technologies

The main advantage of trading using opposite Vinci SA and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci SA position performs unexpectedly, Exail 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.

The idea behind Vinci SA and Exail Technologies SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.