Correlation Between ExlService Holdings and Fox Factory
Can any of the company-specific risk be diversified away by investing in both ExlService Holdings and Fox Factory 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 Fox Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ExlService Holdings and Fox Factory Holding, you can compare the effects of market volatilities on ExlService Holdings and Fox Factory 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 Fox Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of ExlService Holdings and Fox Factory.
Diversification Opportunities for ExlService Holdings and Fox Factory
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ExlService and Fox is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Fox Factory Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fox Factory Holding 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 Fox Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fox Factory Holding has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Fox Factory go up and down completely randomly.
Pair Corralation between ExlService Holdings and Fox Factory
Given the investment horizon of 90 days ExlService Holdings is expected to under-perform the Fox Factory. But the stock apears to be less risky and, when comparing its historical volatility, ExlService Holdings is 1.71 times less risky than Fox Factory. The stock trades about -0.06 of its potential returns per unit of risk. The Fox Factory Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,636 in Fox Factory Holding on June 5, 2025 and sell it today you would earn a total of 148.00 from holding Fox Factory Holding or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ExlService Holdings vs. Fox Factory Holding
Performance |
| Timeline |
| ExlService Holdings |
| Fox Factory Holding |
ExlService Holdings and Fox Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ExlService Holdings and Fox Factory
The main advantage of trading using opposite ExlService Holdings and Fox Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings position performs unexpectedly, Fox Factory 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 Fox Factory will offset losses from the drop in Fox Factory's long position.| ExlService Holdings vs. WNS Holdings | ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. ASGN Inc | ExlService Holdings vs. CACI International |
| Fox Factory vs. Gentex | Fox Factory vs. Autoliv | Fox Factory vs. Dana Inc | Fox Factory vs. Lear Corporation |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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