Correlation Between Tianjin Capital and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital and ExlService Holdings 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 Tianjin Capital and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Capital Environmental and ExlService Holdings, you can compare the effects of market volatilities on Tianjin Capital and ExlService Holdings 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 Tianjin Capital with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and ExlService Holdings.
Diversification Opportunities for Tianjin Capital and ExlService Holdings
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tianjin and ExlService is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Tianjin Capital 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 Tianjin Capital Environmental are associated (or correlated) with ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Tianjin Capital i.e., Tianjin Capital and ExlService Holdings go up and down completely randomly.
Pair Corralation between Tianjin Capital and ExlService Holdings
Assuming the 90 days horizon Tianjin Capital Environmental is expected to generate 1.59 times more return on investment than ExlService Holdings. However, Tianjin Capital is 1.59 times more volatile than ExlService Holdings. It trades about 0.12 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.09 per unit of risk. If you would invest 38.00 in Tianjin Capital Environmental on September 4, 2025 and sell it today you would earn a total of 8.00 from holding Tianjin Capital Environmental or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. ExlService Holdings
Performance |
| Timeline |
| Tianjin Capital Envi |
| ExlService Holdings |
Tianjin Capital and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and ExlService Holdings
The main advantage of trading using opposite Tianjin Capital and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| Tianjin Capital vs. Westshore Terminals Investment | Tianjin Capital vs. Shenzhen Investment Holdings | Tianjin Capital vs. Origin Investment Corp | Tianjin Capital vs. Summit Hotel Properties |
| ExlService Holdings vs. Centaur Media Plc | ExlService Holdings vs. Chiba Bank Ltd | ExlService Holdings vs. Earthworks Entertainment | ExlService Holdings vs. Exchange Bankshares |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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