Correlation Between Exodus Movement, and Specialized Technology

Can any of the company-specific risk be diversified away by investing in both Exodus Movement, and Specialized Technology 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 Exodus Movement, and Specialized Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exodus Movement, and Specialized Technology Fund, you can compare the effects of market volatilities on Exodus Movement, and Specialized Technology 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 Exodus Movement, with a short position of Specialized Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exodus Movement, and Specialized Technology.

Diversification Opportunities for Exodus Movement, and Specialized Technology

-0.53

Correlation Coefficient

Exodus Movement,  Specialized Technology

Excellent diversification

The 3 months correlation between Exodus and Specialized is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Exodus Movement, and Specialized Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Specialized Technology and Exodus Movement, 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 Exodus Movement, are associated (or correlated) with Specialized Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Specialized Technology has no effect on the direction of Exodus Movement, i.e., Exodus Movement, and Specialized Technology go up and down completely randomly.

Pair Corralation between Exodus Movement, and Specialized Technology

Given the investment horizon of 90 days Exodus Movement, is expected to generate 7.49 times more return on investment than Specialized Technology. However, Exodus Movement, is 7.49 times more volatile than Specialized Technology Fund. It trades about 0.14 of its potential returns per unit of risk. Specialized Technology Fund is currently generating about -0.04 per unit of risk. If you would invest  2,200  in Exodus Movement, on October 22, 2024 and sell it today you would earn a total of  1,651  from holding Exodus Movement, or generate 75.05% return on investment over 90 days.

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

Exodus Movement,  vs.  Specialized Technology Fund

Exodus Movement,

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exodus Movement, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Exodus Movement, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Specialized Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Specialized Technology Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Specialized Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Exodus Movement, and Specialized Technology

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

The idea behind Exodus Movement, and Specialized Technology Fund 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.