Correlation Between Exail Technologies and Sogeclair

Can any of the company-specific risk be diversified away by investing in both Exail Technologies and Sogeclair 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 Sogeclair 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 Sogeclair SA, you can compare the effects of market volatilities on Exail Technologies and Sogeclair 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 Sogeclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and Sogeclair.

Diversification Opportunities for Exail Technologies and Sogeclair

0.91

Correlation Coefficient

Exail Technologies  Sogeclair

Almost no diversification

The 3 months correlation between Exail and Sogeclair is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies SA and Sogeclair SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogeclair SA 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 Sogeclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogeclair SA has no effect on the direction of Exail Technologies i.e., Exail Technologies and Sogeclair go up and down completely randomly.

Pair Corralation between Exail Technologies and Sogeclair

Assuming the 90 days trading horizon Exail Technologies SA is expected to generate 1.57 times more return on investment than Sogeclair. However, Exail Technologies is 1.57 times more volatile than Sogeclair SA. It trades about 0.35 of its potential returns per unit of risk. Sogeclair SA is currently generating about 0.23 per unit of risk. If you would invest  1,736  in Exail Technologies SA on December 31, 2024 and sell it today you would earn a total of  2,189  from holding Exail Technologies SA or generate 126.09% return on investment over 90 days.

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

Exail Technologies SA  vs.  Sogeclair SA

Exail Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Exail Technologies SA are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Exail Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Sogeclair SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sogeclair SA are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Sogeclair reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exail Technologies and Sogeclair

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

The idea behind Exail Technologies SA and Sogeclair 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.