Correlation Between Exela Technologies and Agilysys

Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Agilysys 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 Agilysys into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exela Technologies and Agilysys, you can compare the effects of market volatilities on Exela Technologies and Agilysys 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 Agilysys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Agilysys.

Diversification Opportunities for Exela Technologies and Agilysys

0.29

Correlation Coefficient

Exela Technologies  Agilysys

Modest diversification

The 3 months correlation between Exela and Agilysys is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys 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 are associated (or correlated) with Agilysys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilysys has no effect on the direction of Exela Technologies i.e., Exela Technologies and Agilysys go up and down completely randomly.

Pair Corralation between Exela Technologies and Agilysys

Given the investment horizon of 90 days Exela Technologies is expected to generate 2.92 times more return on investment than Agilysys. However, Exela Technologies is 2.92 times more volatile than Agilysys. It trades about 0.06 of its potential returns per unit of risk. Agilysys is currently generating about 0.16 per unit of risk. If you would invest  223.00  in Exela Technologies on February 19, 2024 and sell it today you would earn a total of  32.00  from holding Exela Technologies or generate 14.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Exela Technologies  vs.  Agilysys

Exela Technologies

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Exela Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Exela Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Agilysys

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exela Technologies and Agilysys

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

The idea behind Exela Technologies and Agilysys 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.