Correlation Between Exela Technologies and C3 Ai

Can any of the company-specific risk be diversified away by investing in both Exela Technologies and C3 Ai 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 Exela Technologies and C3 Ai into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exela Technologies and C3 Ai Inc, you can compare the effects of market volatilities on Exela Technologies and C3 Ai 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 Exela Technologies with a short position of C3 Ai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and C3 Ai.

Diversification Opportunities for Exela Technologies and C3 Ai

-0.33

Correlation Coefficient

Exela Technologies  C3 Ai

Very good diversification

The 3 months correlation between Exela and C3 Ai is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and C3 Ai Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3 Ai Inc and Exela 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 Exela Technologies are associated (or correlated) with C3 Ai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3 Ai Inc has no effect on the direction of Exela Technologies i.e., Exela Technologies and C3 Ai go up and down completely randomly.

Pair Corralation between Exela Technologies and C3 Ai

Given the investment horizon of 90 days Exela Technologies is expected to under-perform the C3 Ai. In addition to that, Exela Technologies is 1.4 times more volatile than C3 Ai Inc. It trades about -0.04 of its total potential returns per unit of risk. C3 Ai Inc is currently generating about 0.05 per unit of volatility. If you would invest  2,736  in C3 Ai Inc on October 7, 2024 and sell it today you would earn a total of  942.00  from holding C3 Ai Inc or generate 34.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.89%
Values	Daily Returns

Exela Technologies  vs.  C3 Ai Inc

Exela Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exela Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's essential indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

C3 Ai Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in C3 Ai Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, C3 Ai demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exela Technologies and C3 Ai

The main advantage of trading using opposite Exela Technologies and C3 Ai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, C3 Ai 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 C3 Ai will offset losses from the drop in C3 Ai's long position.

The idea behind Exela Technologies and C3 Ai Inc 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.