Correlation Between Exail Technologies and Plant Advanced

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

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

Diversification Opportunities for Exail Technologies and Plant Advanced

0.14

Correlation Coefficient

Exail Technologies  Plant Advanced

Average diversification

The 3 months correlation between Exail and Plant is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA and Plant Advanced Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plant Advanced Techn and Exail 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 Exail Technologies SA are associated (or correlated) with Plant Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plant Advanced Techn has no effect on the direction of Exail Technologies i.e., Exail Technologies and Plant Advanced go up and down completely randomly.

Pair Corralation between Exail Technologies and Plant Advanced

Assuming the 90 days trading horizon Exail Technologies SA is expected to generate 0.78 times more return on investment than Plant Advanced. However, Exail Technologies SA is 1.28 times less risky than Plant Advanced. It trades about 0.36 of its potential returns per unit of risk. Plant Advanced Technologies is currently generating about -0.04 per unit of risk. If you would invest  1,728  in Exail Technologies SA on October 11, 2024 and sell it today you would earn a total of  180.00  from holding Exail Technologies SA or generate 10.42% return on investment over 90 days.

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

Exail Technologies SA  vs.  Plant Advanced Technologies

Exail Technologies

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Exail Technologies SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Exail Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Plant Advanced Techn

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Plant Advanced Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Exail Technologies and Plant Advanced

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

The idea behind Exail Technologies SA and Plant Advanced Technologies 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 Commodity Directory module to find actively traded commodities issued by global exchanges.