Correlation Between Exela Technologies and VivoPower International
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and VivoPower International 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 VivoPower International 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 VivoPower International PLC, you can compare the effects of market volatilities on Exela Technologies and VivoPower International 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 VivoPower International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and VivoPower International.
Diversification Opportunities for Exela Technologies and VivoPower International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exela and VivoPower is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and VivoPower International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VivoPower International 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 VivoPower International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VivoPower International has no effect on the direction of Exela Technologies i.e., Exela Technologies and VivoPower International go up and down completely randomly.
Pair Corralation between Exela Technologies and VivoPower International
If you would invest 107.00 in VivoPower International PLC on September 24, 2024 and sell it today you would earn a total of 34.00 from holding VivoPower International PLC or generate 31.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 5.0% |
Values | Daily Returns |
Exela Technologies Preferred vs. VivoPower International PLC
Performance |
Timeline |
Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
VivoPower International |
Exela Technologies and VivoPower International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exela Technologies and VivoPower International
The main advantage of trading using opposite Exela Technologies and VivoPower International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, VivoPower International 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 VivoPower International will offset losses from the drop in VivoPower International's long position.Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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