Correlation Between Exela Technologies and ReposiTrak

Can any of the company-specific risk be diversified away by investing in both Exela Technologies and ReposiTrak 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 ReposiTrak 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 ReposiTrak, you can compare the effects of market volatilities on Exela Technologies and ReposiTrak 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 ReposiTrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and ReposiTrak.

Diversification Opportunities for Exela Technologies and ReposiTrak

0.0

Correlation Coefficient

Exela Technologies  ReposiTrak

Pay attention - limited upside

The 3 months correlation between Exela and ReposiTrak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and ReposiTrak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReposiTrak 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 ReposiTrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReposiTrak has no effect on the direction of Exela Technologies i.e., Exela Technologies and ReposiTrak go up and down completely randomly.

Pair Corralation between Exela Technologies and ReposiTrak

If you would invest (100.00) in Exela Technologies Preferred on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Exela Technologies Preferred or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Exela Technologies Preferred  vs.  ReposiTrak

Exela Technologies

Risk-Adjusted Performance

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 relatively invariable basic indicators, Exela Technologies is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

ReposiTrak

Risk-Adjusted Performance

Very Weak

Over the last 90 days ReposiTrak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Exela Technologies and ReposiTrak

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

The idea behind Exela Technologies Preferred and ReposiTrak 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.

Check out your portfolio center.

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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.