Correlation Between Exela Technologies and INPX Old

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

By analyzing existing cross correlation between Exela Technologies and INPX Old, you can compare the effects of market volatilities on Exela Technologies and INPX Old 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 INPX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and INPX Old.

Diversification Opportunities for Exela Technologies and INPX Old

0.45

Correlation Coefficient

Exela Technologies  INPX Old

Very weak diversification

The 3 months correlation between Exela and INPX is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and INPX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPX Old 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 INPX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPX Old has no effect on the direction of Exela Technologies i.e., Exela Technologies and INPX Old go up and down completely randomly.

Pair Corralation between Exela Technologies and INPX Old

Given the investment horizon of 90 days Exela Technologies is expected to generate 0.58 times more return on investment than INPX Old. However, Exela Technologies is 1.74 times less risky than INPX Old. It trades about -0.04 of its potential returns per unit of risk. INPX Old is currently generating about -0.07 per unit of risk. If you would invest  1,820  in Exela Technologies on October 9, 2024 and sell it today you would lose (1,709) from holding Exela Technologies or give up 93.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	30.53%
Values	Daily Returns

Exela Technologies  vs.  INPX Old

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.

INPX Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INPX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, INPX Old is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Exela Technologies and INPX Old

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

The idea behind Exela Technologies and INPX Old 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.