Correlation Between Quisitive Technology and ExlService Holdings

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

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

Diversification Opportunities for Quisitive Technology and ExlService Holdings

-0.53

Correlation Coefficient

Quisitive Technology  ExlService Holdings

Excellent diversification

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

Pair Corralation between Quisitive Technology and ExlService Holdings

Assuming the 90 days horizon Quisitive Technology Solutions is expected to under-perform the ExlService Holdings. In addition to that, Quisitive Technology is 2.32 times more volatile than ExlService Holdings. It trades about -0.02 of its total potential returns per unit of risk. ExlService Holdings is currently generating about 0.26 per unit of volatility. If you would invest  3,649  in ExlService Holdings on September 14, 2024 and sell it today you would earn a total of  944.00  from holding ExlService Holdings or generate 25.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Quisitive Technology Solutions  vs.  ExlService Holdings

Quisitive Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quisitive Technology Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Quisitive Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

ExlService Holdings

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ExlService Holdings are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, ExlService Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quisitive Technology and ExlService Holdings

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

The idea behind Quisitive Technology Solutions and ExlService Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.