Correlation Between Exela Technologies and EGain

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

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

Diversification Opportunities for Exela Technologies and EGain

-0.81

Correlation Coefficient

Exela Technologies  EGain

Pay attention - limited upside

The 3 months correlation between Exela and EGain is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain 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 Preferred are associated (or correlated) with EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of Exela Technologies i.e., Exela Technologies and EGain go up and down completely randomly.

Pair Corralation between Exela Technologies and EGain

If you would invest  571.00  in eGain on October 10, 2024 and sell it today you would earn a total of  110.00  from holding eGain or generate 19.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Exela Technologies Preferred  vs.  eGain

Exela Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Exela Technologies Preferred has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

eGain

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in eGain are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, EGain displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exela Technologies and EGain

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

The idea behind Exela Technologies Preferred and eGain 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.