Correlation Between ExlService Holdings and Evertec
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Evertec 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 ExlService Holdings and Evertec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Evertec, you can compare the effects of market volatilities on ExlService Holdings and Evertec 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 ExlService Holdings with a short position of Evertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Evertec.
Diversification Opportunities for ExlService Holdings and Evertec
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ExlService and Evertec is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Evertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertec and ExlService Holdings 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 ExlService Holdings are associated (or correlated) with Evertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertec has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Evertec go up and down completely randomly.
Pair Corralation between ExlService Holdings and Evertec
Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.89 times more return on investment than Evertec. However, ExlService Holdings is 1.12 times less risky than Evertec. It trades about 0.06 of its potential returns per unit of risk. Evertec is currently generating about 0.0 per unit of risk. If you would invest 2,922 in ExlService Holdings on May 27, 2025 and sell it today you would earn a total of 1,456 from holding ExlService Holdings or generate 49.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. Evertec
Performance |
| Timeline |
| ExlService Holdings |
| Evertec |
ExlService Holdings and Evertec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Evertec
The main advantage of trading using opposite ExlService Holdings and Evertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Evertec 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 Evertec will offset losses from the drop in Evertec's long position.| ExlService Holdings vs. WNS Holdings | ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. CACI International |
| Evertec vs. NetScout Systems | Evertec vs. Consensus Cloud Solutions | Evertec vs. CSG Systems International | Evertec vs. ExlService Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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