Correlation Between ExlService Holdings and Clearwater Analytics

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

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

Diversification Opportunities for ExlService Holdings and Clearwater Analytics

-0.24

Correlation Coefficient

ExlService Holdings  Clearwater Analytics

Very good diversification

The 3 months correlation between ExlService and Clearwater is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Clearwater Analytics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Analytics 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 Clearwater Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Analytics has no effect on the direction of ExlService Holdings i.e., ExlService Holdings and Clearwater Analytics go up and down completely randomly.

Pair Corralation between ExlService Holdings and Clearwater Analytics

Given the investment horizon of 90 days ExlService Holdings is expected to under-perform the Clearwater Analytics. But the stock apears to be less risky and, when comparing its historical volatility, ExlService Holdings is 1.84 times less risky than Clearwater Analytics. The stock trades about -0.09 of its potential returns per unit of risk. The Clearwater Analytics Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,990  in Clearwater Analytics Holdings on September 11, 2025 and sell it today you would earn a total of  100.00  from holding Clearwater Analytics Holdings or generate 5.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ExlService Holdings  vs.  Clearwater Analytics Holdings

ExlService Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days ExlService Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Clearwater Analytics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Clearwater Analytics Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Clearwater Analytics may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with ExlService Holdings and Clearwater Analytics

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

The idea behind ExlService Holdings and Clearwater Analytics Holdings 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..